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Canadian Grain Exports

Canadian Grain Exports

Grain Trends North America – 2016

Canadian grain exports of wheat, excluding durum, have reached nearly 10 million tons between August 2015 and January 2016. This is up from the same 2014 to 2015 period by almost 19% (8.1 million tons). March 2016 prices are averaging approximately $4.40 per bushel. Durum wheat is projecting a slight acreage increase due to the better prices in 2015.

With Canadian grain exports of 24.1 million tons this past year, Canada overtook the United States in wheat exports for the first time. This looks to be an ongoing trend with slight fluctuations over the next several years.

Globally, wheat production is trending lower for 2016. The U.S. projects the lowest exports since 1971 due to competition from other countries, including Canada. In addition, the higher prices and demand for pulses, or legume seeds, indicates a decrease in acreage for wheat and an increase for the pulses.

Canola is currently up from 4.1 million tons to 4.8 million tons for the crop year. This is a significant increase from the five-year average. Canola prices average $10.00 per bushel according to the latest prices and it doesn’t appear there will be much change in acreage.

There is a growing trend towards the production of pulses due to their high protein Dried Red Lentils - Pulse Cropscontent and increasing demand by consumers and restaurants. As the demand for this popular seed increases, it’s likely cereal grains will lose some acreage to pulse production. Prices are strong for lentils and peas at .25 to .40 per pound for lentils and $8.00 to $9.00 per bushel for yellow peas.

Overall, 2016 looks to be a mixed year for Canadian grain exports with wheat prices remaining stable and canola showing an increase. Pulses are likely to continue their current trend with a significant increase due to their growing popularity.

Barr-Ag

 

Contact Barr Ag to get more information on any or our crops including Alfalfa, Timothy, Mixed Hay, Canadian Grains and Pulse crops.

Canadian Grain Exports

Canadian Grain Exports

Canada as a top producer of wheat in the world, typically places seventh among major wheat producing countries in yearly comparisons.Across Canada, nearly 52,000 farmers grow wheat on over 22.8 million acres of Canadian land. Although wheat is grown across the country, the majority of the production of Canadian wheat exports takes place in Western Canada.

Canada is also the second largest exporter of wheat in international trade, averaging overCanadian Grain Exporters 20 million tonnes exported annually. In 2012, this number surpassed 27 million tonnes.Canadian grain exports account for approximately 21% of all wheat exports in the world market. Wheat export revenues in Canada total almost $5.4 billion each year. Some of the major importers of Canadian grain exports are China, Mexico, Japan, Colombia, Iraq, and the United States.

In addition to producing a large quantity of wheat, Canada is also renowned for the quality of its wheat. The Canadian Grain Commission (CGC) established quality standards in the Canada Grain Regulations Section 5. In addition to maintaining quality standards, the CGC records annual crop year data for wheat.

The CGC divided wheat into several unique classes, based on the grains functional characteristics. Growing regions in Canada, Western and Eastern, determine the categorization placed on the classes. Each class possesses a certain set of characteristics and is best suited for specific end uses.

Because of the superior quality of Canadian hard wheat, it is primarily used in the making of pastas and semolina. This hard wheat, also called durum, accounts for nearly half the total of world exports with Algeria and Italy the two largest customers.

Not only is Canada a leader in wheat exports it is now the second largest exporter of barley in the world with an average of 3.8 million tonnes per year capturing 22% of the world’s trade in brewing and feed barley.

Canadian grain exports dominate the market with nearly four million tonnes exported annually, it accounts for 80% of the total exports of canola, and 10% of the total oil seeds exports on the world market. To put these figures in perspective, the second highest exporter of canola, the European Union, only exports just over 300,000 tonnes each year. As demand for canola continue to grow, Canada’s canola industry is soon expected to exceed 12,000 tonnes per day.

Contact Barr Ag to get more information on any or our crops including Alfalfa and Timothy Hays, Mixed Hay, Canadian Grains and Pulse corps.

Canadian Grain Storage Systems

By Ammodramus (Own work) [Public domain], via Wikimedia Commons

By Ammodramus (Own work) [Public domain], via Wikimedia Commons

Record breaking Canadian grain crop yields and last year’s transport delays have sparked a greater interest and concern for grain storage options. Grain storage is a huge investment for Canadian farmers, but in order to keep up with growing farms and increased market demand for Canadian grain, older storage systems need to be updated.

Alberta Agriculture and Rural Development recently put together two fact sheets to help farmers make an informed decision regarding grain storage solutions. These sheets weigh out the pros and cons of each option by looking at cost comparisons including repairs and maintenance, different types of permanent and temporary storage systems as well as the size of each farm’s operation and requirements.

The two new fact sheets are Grain Storage: Cost Comparisons and Grain Storage Considerations.

The length of time a grain can be safely stored depends on the condition it was harvested and the type of storage facility. Low moisture content and low temperature in storage is essential for successful storage of grain and will prevent it from deteriorating, especially over longer periods of time. Other serious issues that can occur by faulty grain temperature or moisture content include a presence or increase of insects, mice, mold and fungi.

Depending on their operation, Canadian grain growers choose between permanent and temporary grain storage options. Permanent storage including affixed structures like corrugated or smooth walled steel bins, steel or fabric sheds, and farmer owned elevators. Temporary storage could include grain bagging systems, grain rings and tarps, bunkers or even open piles if the crop will be moved after a very short period of time.

Jennifer Stoby, a provincial market analyst for agriculture inputs commented on bins versus grain baggers in an article published in the Alberta Farm Express. She shared that operations need to store more than 70,000 bushels of grain per year to make the grain bagger option more competitive than steel bins. These findings can be reviewed in the Grain Storage: Cost Comparisons fact sheet.

Selling Grain in Western Canada

Canadian farmers looking to sell their grain crops can contact Barr-Ag. As wholesale buyers of Canadian farm crops we will buy locally produced oats, barley, wheat, flax, canola and pulse crops as well as Alfalfa and Timothy hays. Barr-Ag specializes in containerizing, loading and shipping Canadian grains to our extensive database of international purchasers.

Deciding on a brand new grain storage system could be made easier if you had a reliable buyer for your quality grain, oilseed and hay crops. Call Barr-Ag today to get a market price for your crop.

 

Sources:

http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/crop1204

http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sis15018

http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sis15016

http://www.albertafarmexpress.ca/2014/09/25/the-bottom-line-on-grain-storage/?module=under-carousel&pgtype=homepage

Spring Price Endorsement for Canadian Farmers

Canadian Canola

Canadian farmers have several options for insurance to protect the price of new crop canola. The Spring Price Endorsement is a price risk management tool, purchased as an endorsement on a crop specific basis. It will pay out if market prices decline below a determined level on actual production on a crop specific basis, according to a ‘within year’ price decline up to the coverage purchased.

Earlier this spring, Agriculture and Rural Development Alberta issued a press release reminding Canadian canola farmers of this option.

“The 2014 canola spring price under the AFSC Spring Price Endorsement (SPE) is $9.75/bushel,” says Neil Blue, market specialist, Alberta Agriculture and Rural Development, Vermilion. “A payout under the SPE would be triggered if the fall price drops by more than 10 per cent (i.e., 97 ½ cents/bushel) from this spring price. If the calculated fall price is below $8.77 ½ /bushel, there will be a payout under the Spring Price Endorsement.”

Blue continued to explain that the overall payout would equal spring price for Canadian canola of $9.75/bushel minus the fall price X crop insurance coverage in bushels. The Spring Price Endorsement (SPE) is limited to 50% of the price drop from the spring price ($9.75) or $4.88/bushel for 2014. The fall price for canola in 2014 is calculated by finding the average of the daily closing prices for ICE Futures Canada November canola during the month of October, then subtracting $20/tonne from that number. Prices less than $406.90/tonne in October would trigger a payout under the SPE.

It’s important for Canadian canola farmers to obtain all the information from the different pricing options, considering their costs of production, estimated crop carry-over, storage capacity, potential production and other financial needs. Keeping an eye on the current marketing environment and using different pricing alternatives will help farmers ‘spread out’ the pricing risks on this year’s crop.

“It may be prudent in the current crop marketing environment to use several different pricing alternatives to distribute the pricing risks of your upcoming crop,” Blue adds.

Looking for a Buyer for Your Canola and Other Crops?

Canadian hay truckBarr-AG Hay and Grain Exporters will buy your Canadian canola, oats, barley, wheat, flax, and pulse crops as well as Alfalfa and Timothy Hays.  We specialize in containerizing, loading & shipping Canadian grains and hays and we’re major wholesale purchaser of Canadian Farm Crops.

We offer Canadian grain growers the opportunity to sell their crops locally.  We have a good reputation and wide customer base in the international market, with years of experience producing and selling Canadian grains and hays overseas.  We have a huge database of reliable international purchasers who are in the market for Canadian canola and other oil seeds as well as grains and hay forages.

If you have a crop coming in and are looking for a market to sell your crop – Call Barr-AG today to get a market price on your crop.

Grains from Canada

Sources:  http://www1.agric.gov.ab.ca/$department/newslett.nsf/all/agnw22124

http://www.albertafarmexpress.ca/2014/05/26/many-ways-to-protect-the-price-of-your-canola-crop/

http://www.afsc.ca/doc.aspx?id=5530