Not much price movement in Canadian organic grain market

By Glen Hallick
Glacier FarmMedia staff

There hasn’t been a lot movement for most organic grain prices in Canada over the last month, according to people in the industry. Since the harvests wrapped up in Ontario and on the Prairies earlier this fall, those grains for which prices are currently being offered haven’t changed much.

“We have hit price points that are hurting demand,” commented Jason Charles of Charles Commodity Consulting.

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“I believe prices are fair. I’m not going to say it’s a great price, but I believe it’s fair price where it’s at right now – a doable price,” concurred Jason Breault of RW Organics.

“Prices are starting to come down a little as the supply reality has bit the market with demand being flat,” added Scott Shiels of Grain Millers Canada.

“Buyers aren’t committing to large purchases because the market is still uncertain,” stated Rob Wallbridge of SureSource Commodities.

The last number we threw out we weren’t getting a lot of love. – Rob Wallbridge

Then there are the organic grains for which no bids are being offered. Flax on the Prairies being one of them, noted Shiels.

“The last number we threw out we weren’t getting a lot of love,” he said, with Grain Millers having offered C$57 per bushel for brown flax. “Guys wanted mid-sixties on brown.”

“Flax is the kind of crop that you can hold out for more. Usually, you don’t have the bins and bins of it like you do with wheat and oats. So, guys will be a little more tight with it,” Shiels continued.

However, hanging on to one’s grain will raise another issue that Breault explained when it comes to wheat.

“We are throwing an extra dollar out there for February-March delivery right now. Some of that goes back to the way interest rates have gone up. It’s pretty expensive to sit on it for six months,” he said.

In the case of durum, there are very few, if any, bids for it.

“What happens is durum get pricey and [the processors] just bring it in from another country or use something else,” Breault pointed out.

If a farmer asks for too much for flax, the buyer will get it from somewhere else. – Scott Shiels

Shiels said there can be a similar occurrence when it comes to flax.

“There are a lot of places in the world where they grow some pretty nice organic flax. If a farmer asks for too much for flax, the buyer will get it from somewhere else. I haven’t’ heard of anything getting imported this year – yet,” he emphasized.

Also, Charles said there hasn’t been much demand for rye, barley, or soft white spring wheat because of the pricing. But come the New Year he expects prices to start coming down.

“There’s no cure for high prices like high prices,” he quipped.

Shiels noted that the organic grain harvest on the Prairies went quite well this year, a marked improvement over last year’s drought-ridden experience. In Ontario, Wallbridge said the harvest was good as well, but only in those areas that received enough rain. Otherwise, yield were not as good.