Grain Today - September 2022
Well it is September 1,2022 and we have just gone through the craziest/volatile 24 months of grain markets that I have seen in my 48 years of being directly involved in grain markets. First as a producer then as a broker. It has been great while it was going up but these last 2 months on the express elevator down have created a bit of a challenge for everyone involved. As usual the producer gets caught between what they need for profit based on current costs and what the actual market will bear. As an example we traded $10 gluten free oats mid January 2022. Today the bids are $4.50 for the same product in the same area. Granted $10 oats are not a sustainable price in the long term but maybe $4.50 is just a bit too low vs actual yields and cost.
We are seeing a big swing in crop yields this year. Better than last year in the very dry areas, all the way to excellent “Best crop in 20 years”. We likely will end up with close to average production across the prairies this year. Prices have reflected the better supply. Barley is $6 ish on average, feed wheat $8.75, feed oats $3.50, milling oats $4 ish, Yellow peas $10.50, green peas similar. It will be interesting to see if chickpeas hold the premium they had last year.
We still have good demand for yellow, brown and oriental mustard.
The same principles of successful marketing apply this year as always.
#1 - keep good bin samples…
#2 - monitor your grain once harvested
#3 - clean out handling equipment when switching crops. Great way to ruin gluten free oats.
#4 - Get your samples independently graded. Buyers love to have results from SGS, Intertec or any of the other graders out there.
#5 - Contact a reputable broker to get you multiple independent bids. We work for you when you call. The more information you bring us the more likely we will be able to get you top dollar.
Most importantly – Be careful - you and your crew need to get through harvest in one piece or it will be the worst harvest you have ever had.
I know you are busy so we will keep this edition short but here is an interesting chart from Stats Can as well as a link to the whole report if you have time.
( Stats Canada Link)
Until next time. May the sunshine and the rain not fall.
PS I will be in Egypt trying to find markets for grain between camel rides and checking out the pyramids until Sept 21st, so contact Reed if you have questions.
Till next month.
Marketer - Brandon, MB
204-729-1354 - Office
204-761-8320 - Cell
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