December 7, 2010

Canada to introduce new feed-wheat pricing programme

The Canadian Wheat Board (CWB) has introduced new pricing options for feed wheat, in order to assist farms who are struggling with large supplies of lower-quality grain this year.

"Wet weather throughout the growing season means more feed wheat in the bins than there has been in at least six years. This has created a difficult situation for many farmers," said CWB President and Chief Executive, Ian White. He also said that, "as much as a quarter of wheat harvested this year could grade as feed."

The new pricing programme gives farmers the choice of immediately locking in prices for Canada Western feed wheat, said White.

"Farmers tell us they would like to lock in a feed-wheat price this year so we adapted an existing program to enable them to do that," White said.

"Farmers can now choose the feed-wheat price that suits them best, taking into account their market view and cash-flow needs."

In an average year, more than 70% of western Canadian spring wheat is in the top two grades. This year, only 38% is expected to attain grade 1 or 2, leaving about 35% as grade 3 and 25% as feed.