The manager of Pooling with G3 Canada Limited is advising end users of grain to secure their supplies for summer early.
Last week G3 Canada Limited released its 2015-2016 Winter Pool Return Outlooks and 2016-2017 Early Delivery Pool Return Outlooks.
The overall trend is weaker prices, the result of a dramatic strengthening of the Canadian dollar over the past several weeks.
Dave Simonot, the Manager of Pooling with G3 Canada, says we had an average crop last year and grain has been moving steadily so we’ll probably end up with a pretty bare cupboard earlier than usual this year.
For example, on wheat we are seeing very much a little change from year to year in terms of acreage. The prices is not driving farmers really to or away from wheat this point. The forward price for new crop is a little bit better than the nearby price but it’s just a plant your usual kind of acreage indication that we’re seeing right now.
Similar on barley. As often is the case in barley we see attractive pricing on malting quality barley while the feed prices are just so so, so our acreage for barley is anticipated to be basically the same as last year, no big increase or decrease.
The other big factor of course when you’re looking at the availability of feed supply is are there any degrading factors? Is quality up to par or are we gong to see some downgrading? That we really won’t know until once we’re into the season, especially in the case of wheat.
Some years we produce large quantities of lower grade wheat that will find its way into the feed channels but at this point it’s too early to say whether that’s likely or not. At this time of year, it’s not terribly helpful but we anticipate pretty average pretty normal production across all the grains.
Simonot says we could see some limited availability of grains generally and feed grains and suggests getting covered relatively quickly because there may be a bit of a dry period come summer.
