December 20, 2007

Canadian Wheat Board: Making headway on exports

The Canadian Wheat Board (CWB) is making good headway on its export commitments for 2007-08 (August/July) and should be ahead of schedule next spring provided farmers can be persuaded to make their deliveries earlier, said a CWB official.

"We have really strong sales on the books, and we'll be using all of the tonnage available to us from the railways through every Canadian transportation corridor," said Mark Thibeault, director of supply optimization with the CWB.

"The winter rail program is underway, and we'll have strong movement throughout the winter months," said Thibeault. He expected the tonnage shipped through the annual program to be similar to previous years. In 2006-07, the CWB railed roughly 1 million tonnes of grain from western Canada to eastern ports, while the Port of Thunder Bay was closed for the winter.

Thibeault estimated that roughly 90 percent of the CWB's sales commitments for the year would be filled by the end of May, which would be ahead of a normal year when only 80 percent of sales commitments would be filled by that time. He also noted that the CWB also has less wheat and durum to market this year due to smaller production.

Western Canadian farmers have three opportunities over the course of a year to contract their grain with the CWB. The majority is usually contracted through the A series, which was due at the end of October, with the B series deadline coming up at the end of January and the C series at the end of May.

Thibeault said the CWB was working to encourage producers still holding onto wheat supplies to contract through the B series rather than wait until the C series deadline.

"It will be a challenge to ensure that the producers deliver everything early this year," he said, adding that sales could be delayed if producers hold off until the later deadline and not enough grain is available.