September 22, 2010

Canadian prairies expect plenty of feed wheat

Many producers are expecting wheat crops to yield poorer quality, translating to abundant feed wheat amid adverse harvest conditions across the Canadian prairies.

Gerald Snip, a grain trader with Market Place Commodities in Lethbridge, said most of Alberta and Saskatchewan were having big problems getting the crop off.

"It's just too wet to even get the combines on the field right now," Snip said. "There's lots of frustration out there at the moment."

All of the rain and cool temperatures have pushed back not only the harvest, but the maturity of the crop. Because of these factors, Snip said the quality of wheat will be poor, meaning a large supply of feed wheat coming in.

"As time keeps on going, the quality deteriorates, and producers get the grain sprouting in the swath, and sometimes even in the standing grain with the excess moisture," he said.

Snip said that frost is a non issue as far as quality is concerned at the moment.

Although it looks as if there will be plenty of feed wheat coming in once the harvest is over, Snip said the market is still moving in a bullish direction. "It seems to be moving up a bit, mainly because of lack of access to product. Guys are holding onto stuff, thinking the market is going up if they happen to have grain," Snip said.

Snip said demand is strong, with more and more feedlots incorporating wheat into their rations. Snip said he expects the market to remain about where it is for the final quarter of 2010.

Elevator deliveries were bringing as much as CAD4.62 (US$4.48) per bushel in Manitoba, CAD4.23 (US$4.10) per bushel in Saskatchewan, and CAD5.50 (US$5.33) per bushel in Alberta. Those prices range from steady to CAD0.66 (US$0.64) per bushel higher from one month ago.