Improved moisture bodes well as organic markets wait on new crop

By Phil Franz-Warkentin
Glacier FarmMedia staff

Ample rains across most of the Canadian Prairies this spring bode well for the organic crops in the ground after last year’s drought. Markets are holding relatively steady for both the old and new crop, with little pricing underway as both buyers and sellers wait to get a better handle on production.

“We’re covered until the new crop,” said Jason Breault of RW Organics in Saskatchewan, echoing a common sentiment at the end of June. He said some business was still going on, with sporadic opportunities when a buyer may need to fill a load at the last minute. However, with the generally tight old crop supply situation, most end users are now waiting for the harvest.

It’s not a drought yet, but like they say, ‘the Prairies are always only three weeks away from a drought.’ – Jason Breault

“Compared to last year, things look a lot brighter,” said Breault. However, “we’re a long way from the bin,” he added, noting that storms, hails, insects, or a lack of rain through the rest of the growing season could all influence eventual yield.

“It’s not a drought yet, but like they say, ‘the Prairies are always only three weeks away from a drought’,” said Breault. On the other hand, some areas could be dealing with excessive moisture.

There isn’t much activity going on for guys that still have old crop grain to sell, said Kelly Cornelius of Grain Millers in Yorkton, Sask. He described the market as inverted, with higher bids for nearby delivery and not much activity yet for new crop.

Cornelius described the crops as looking good overall, although after the wet spring “we need at least a couple of weeks for things to dry out.” He estimated that many areas of Western Canada maybe only needed one more good rain before the end of July.

In Ontario, many crops went in the ground late with variable conditions, according to Rita Felder, of Field Farms Marketing. She said prices for soybeans and corn were holding near the high levels they’ve seen over the past few months, with the general strength of the market limiting activity from both buyers and sellers.

“It’s typical in a high price environment that everybody is sitting on their hands for a bit,” said Felder.