Grain Today - August 2021
We have seen another very interesting month in regard to grain prices. Strong feed and milling wheat prices and all the pulses moving up as the month progresses. This seems like the year that just doing nothing has been the best marketing strategy. I am not sure that this rally can continue forever so everyone should be looking into possibly locking in some of these prices on a percentage of their production.
We have been hearing some horror stories of producers not being able to fill contracts and having huge penalties to pay to get out from under them. If you are thinking that you might be in that situation it would likely be better if you discuss it with your buyer sooner than later. You need to understand what is worst case before you can start to plan. Thank goodness for Act of God clauses on a year like this. If anyone is in this situation maybe Quality Grain could help you source the grain you need to fill the contract. This won’t be all roses and sunshine but is one possibility.
If you happen to be in an area that has received no rain I am sure you will disagree with me as far as my GUESS at the total crop in western Canada. These are % of average production. 50% on pulses, 45-50% on canola, 40% on flax, 60% on wheat and 45% on barley. If anyone has harvested or are going to abandon acres, I would really appreciate some grass roots feedback. And not the numbers you give to Stats Canada please.
From what I have heard so far is barley yields of less than 5 bushel/acre in Champion AB, Winter wheat 45-50 bus in the Alameda SK area, yellow peas in SE SK 30 to 40, YP in Hamiota MB area 40 bus. Barley in Elie MB area estimated at 15 bushels and baled for green feed. Yellow peas 10 miles south at 70 bushels (caught one more rain), barley in Brandon MB area 50 to 90 bushels (sandy vs heavy soil). If you would like to add some information to this list that would be great. We will share it back out to everyone. Direct info is better for making decisions than what the media spin doctors have created.
One thing that I will touch on that will be important is to make sure you have accurate bin samples and get accurate grades and bushel weights. It will not be the year that buyers give you a pass if you ship 46 lb barley, the discounts will be steep. I think since quality will be such an issue this year good info will be even more important.
Back to new crop prices. We have had bids of $12.00 or better on Yellow Peas in SE SK , $7.50 -$7.70 on new crop barley in Western MB, $10 plus for Winter Wheat in Eastern SK. $12 on Green Peas in Vulcan AB. As you can see, we are getting strong bids on all commodities. Give us a call and we will help you with your price checking.
That’s about it for now. Have a safe harvest and lets all hope for a better year next year.
Marketer - Brandon, MB
204-729-1354 - Office
204-761-8320 - Cell
John Falk Richie Yaremko
Marketer – Altona MB Marketer – Yorkton SK
Victor Dorma Reed McDonald
Marketer - Airdrie AB Owner/Marketer – Calgary AB.
Wes Schneider Howard Warren
Marketer - Vulcan AB Marketer – Champion AB
Robert Rusu Andrew Hall
Marketer - Moose Jaw SK Marketer – Lethbridge AB
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