Prices for organic grains steady to lower

By Glen Hallick
Glacier FarmMedia staff

Prices for organic grains in Canada have largely been steady to lower during February, according to several traders. They said supplies are rather plentiful due to a decent harvest in 2022 – especially on the Prairies.

“Most everyone is covered for the next several months, awaiting new crop. No one is out there pushing bids higher,” commented Jason Charles of Charles Commodity Consulting, noting that prices were “historically quite high.”

[RELATED] Organic price quotes: Late February

As with the conventional market, the organic market witnessed sharp price spikes following the near-disastrous harvest of 2021 that was plagued by drought. Sharply reduced production led to steep declines in available supplies, which of course drove up prices with some records being set along the way.

Healthy rains in the spring of 2022 significantly aided the recovery, with moisture levels getting back towards normal across much of Western Canada. Although dry conditions hit the Prairies during the latter part of summer, precipitation in the fall helped to replenish soil moisture levels.

While yields for conventional and organic crops were moderate to good, the boost in production sufficiently filled dwindling stocks.

Since the 2022 harvest, a number of organic grains have incurred a spate of no bids being offered. Movement of those organics has been slow as well, which has pulled prices further away from their highs.

“For the foreseeable future we are going to see things stay the same with a lower bias,” Charles said.

One trader who asked not be named, noted that prices likely won’t drop too much more as spring approaches. He said that are likely some buyers in need of being covered and will quickly jump into the market looking for what they want and then exit just as fast. The trader said that could lead to some short-lived price spikes in what he sees as a rangebound market.

For the foreseeable future we are going to see things stay the same with a lower bias. – Jason Charles

Another factor helping to keep prices lower are adequate subsoil moisture levels despite areas lacking snow cover, according to Jason Breault of RW Organics near Mossbank, Sask.

“We did get nice [precipitation] in the fall in which the subsoil moisture is there. The run-off isn’t looking that great, but as far as the subsoil goes, I think we are going to be adequate. We are in a better position than we were last year,” he explained.

Breault said the areas lacking that desired snow cover on the Prairies tended to be south of the Trans-Canada Highway. However, he noted there are still plenty of opportunities for precipitation heading towards spring planting.

As for prices, he said RW Organics currently doesn’t have much need for any organic grains and mills across the region were either full or close to it.

Among some of the organic grains where bids have seen sporadic pricing has been oats and flax, according to Scott Shiels of Grain Millers Canada in Yorkton, Sask. The prices for those two that are available, are softer as they come down from their highs.

He said flax was fetching as much as C$80 per bushel and Grain Millers most recent bid was C$50, which he said, “it’s still nothing to sneeze at.”

Shiels chalked up the easing of prices to not so much a lack of demand, rather a lack of sales. He said some producers believe prices could still rebound.

“With the crop we had this year, conventional or organic, with pretty much every commodity you’re not going to see that rebound happen. There’s just a big supply of everything right now,” Shiels explained, acknowledging there could be an upwards push prior to seeding.

It feels like there’s a need out there for some grain to move, but buyers are content to wait. – Dwayne Lee

That sentiment was echoed by Dwayne Lee of Growers International Organic Sales Inc. in Winnipeg, Man.

“Things are stable to drifting, backing off a little bit,” Lee said. “It feels like there’s a need out there for some grain to move, but buyers are content to wait.”

In Ontario, Rita Felder of Field Farms Marketing said there’s a downward trend in organic pricing in that province.

“It’s probably an overhang of supply mostly,” she commented.

However, Felder pointed to a lack of winter and spring wheat. She said they’re sold out with nothing available, and so there weren’t any current prices.

The Canadian Organic Growers (COG) are scheduled to have their annual general meeting on April 12. The one-hour virtual meeting will include elections for COG’s board of directors. For more information go to cog.ca or email [email protected].