Prices waiting on harvest

By Glen Hallick
Glacier FarmMedia staff

Delays to this year’s harvest have resulted in virtually no new pricing for organic grains, according to several market participants.

The eastern half of the Canadian Prairies witnessed significant delays to spring planting of conventional and organic crops due to wet conditions. Meanwhile, all crops on the western half were planted early but were stymied repeatedly by a lack of timely rainfall. Ontario had similar issues, with some parts of the province with dry conditions, while other areas contend with wet conditions.

Scott Shiels of Grain Millers Canada at Yorkton, Sask. explained the essence of the near absence of pricing for organic grains.

“The food companies want to wait until harvest gets going,” Shiels said, noting there’s been some combining a few parts of the country. As well, in most parts of Canada the harvest of conventional crops remains in the early stage for spring crops.

He spoke of an organic producer in the area of Saskatoon who harvested 80 acres of organic oats. The farmer told Shiels that it reaped more than 100 bushels per acre.

“That’s pretty close to double on what we would see on average. It’s a bit of a home run,” Shiels said.

He added there’s some reluctance as well in the conventional market to offer prices.

“As nice as things look, everybody is waiting, thinking prices are going to be lower,” Shiels commented.

Jason Freeman of Farmer Direct Co-op also said crops across Western Canada are looking very nice and there has been some pricing and in particular for oats.

“The organic oat crop looks great, but the crop from last year left a tremendous supply deficit. A significant portion of the organic oat acreage was contracted in the spring for between $10 per bushel for regular organic and up to $12/bu. for gluten-free organic and Regenerative Organic Certified oats.

“This has established a new pricing relationship for organic oats and buyers have accepted that the days of $6/bu. oats are over,” Freeman wrote in an email.

He noted the demand for oats has increased, due in part to few people being allergic to oats, unlike cow milk or soy milk — and also due to oats remaining more affordable.

Rob Wallbridge, the sales lead for SureSource Commodities at Petrolia, Ont., said organic grain farmers in that province are “for the most part a lot happier with their crops than they were a few weeks ago.” He pointed to dry conditions that posed a threat to all crops, especially those in southwestern Ontario.

Although rain did come, Wallbridge suggested that it was ‘too little, too late’ for soybean fields in that part of the province. He said organic corn responded quite nicely to the precipitation.

Wallbridge said all crops in the eastern part of Ontario have fared far better with sufficient rainfall.

Harro Wehrmann of Wehrmann Grain and Seeds Ltd. at Ripley, Ont. concurred with Wallbridge about the crops, and noted there has been very little pricing at this point.

“Crops are looking pretty decent, I would say. There are some drought areas and there are some wet areas,” Wehrmann added.