Organic Grain Prices

The prices below come from organicbiz.ca. The website posts grain prices on a monthly basis.

Current Organic Grain Prices

Grain prices are updated monthly by Organic Biz.


Market Commentaries

Each month, we reach out to the industry’s leading organic grain buyers for insights on the markets. Hit the ground running when it’s time to harvest your crops!

Click here to view past market commentaries.

Field Farms Marketing Ltd.

 

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When looking to contract grain, what are the most important questions that a producer needs to ask a potential buyer?

When contracting grain, the producer and potential buyer need to ensure there is clear communication between them in order to avoid any confusion at a later date. This begins with asking the right questions. As a producer, probably one of the foremost questions on your mind are the details surrounding the terms of payment. How will the buyer pay you and by when? It is also important to ask the buyer what they are looking for surrounding the product specs and about the details regarding delivery of the product. Is the buyer going to pick up the product from the farm or are you responsible for delivering it to a specified location? It is crucial to know the small details of the agreement to ensure both parties walk away happy, leaving the door open for future business.

What are the potential pros and cons to signing a forward contract for a producer? Are there good reasons to not sign contracts ahead of seeding/harvest?

By entering into a forward contact with a buyer you are able to lock in an agreeable price for your crop at a future date, thereby removing any uncertainty surrounding how much you will receive for your crop. That being said, there are still benefits and drawbacks of forward contracts. If market prices decline as the delivery date approaches your contract price is locked in, meaning the price you receive is higher than the current market prices. On the contrary, if market prices are rising leading up to the delivery date of your contract, the contract price is locked in at lower prices meaning you are selling product at lower prices than what the market is currently offering. A technique to mitigate this risk is to forward contract only a portion of the crop that you are expecting to produce. It may not be the best option to enter a forward contract before seeding/harvesting if there is any doubt surrounding the quality or quantity of the crop as you would be obligated to deliver the specified quality and quantity of product that was stated in the contract.

What should producers be looking for to ensure that they have an airtight contract with their buyer?

For a producer to ensure that their contract with a buyer is as airtight as possible they should ask for all terms and details of the contract to be in writing, in order to leave no room for interpretation. Important details to include in any contract are the product description, quality and grading requirements, price, payment terms, delivery schedule, and any risk that each party assumes by entering into the contract. Another commonly overlooked point is to ensure you read, understand and agree with every term in the entire contract before you put your signature on it. If there are any terms in the contract that are convoluted, be sure to ask the buyer for clarification. When it comes to contracts, the devil is in the details.

Sustainable Grain

 

 

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When looking to contract grain, what are the most important questions that a producer needs to ask a potential buyer?

  • Every contract should state the grain, grade, price, location and delivery window.
  • Beneficial on the contract: signatures, date of agreement, dispute and resolution mechanisms, affidavits for wash tickets on trucks, etc.

What are the potential pros and cons to signing a forward contract for a producer? Are there good reasons to not sign contracts ahead of seeding/harvest?

A forward contract should, but does not always, guarantee delivery and payment within a pre-set window. Contracting production ahead of the growing season locks in a higher crop insurance price, in the event of loss. Crop insurance prices on organics are lower than the market. Insurance and buyer performance aside, the main factor influencing the decision to contract production ahead of harvest is the seller’s opinion on price direction. Cash flow needs and storage capacity at harvest are secondary but critical factors to forward plan around.

What should producers be looking for to ensure that they have an airtight contract with their buyer?

The only thing that will ensure buyers demonstrate airtight performance on contracts is a bull market. There are no trade rules in organics, no talk of developing them, and therefore no recourse for non-compliance to contract terms.

Grain Millers

When looking to contract grain, what are the most important questions that a producer needs to ask a potential buyer?

When contracting your grain, always be sure to know the specs for the grain that you are contracting. Often times, important details like moisture maximums, and protein levels, will differ from buyer to buyer, so don’t assume that these will be standard. Also, see how firm the delivery time frames are with your buyer, especially if you are selling grain for a specific delivery window to meet a payment or other obligation. Along with that, make sure that you know the buyer’s payment terms, these can vary greatly from buyer to buyer as well.

What are the potential pros and cons to signing a forward contract for a producer? Are there good reasons to not sign contracts ahead of seeding/harvest?

Forward contracting is an essential tool that a producer can use to ensure that they have price guarantee, and more importantly, delivery opportunities when they need them in the coming year. Having your price locked in on a percentage, or your entire crop, can make budgeting decisions easier, and protect you from any price drop. However, on the flip side, you may miss out on unexpected rallies in the market, which is really the only con to signing forward contracts.

What should producers be looking for to ensure that they have an airtight contract with their buyer?

When you are contracting your grain, ask LOTS of questions. If for any reason, the answers you get are not completely to your satisfaction, ask again. There should be no reason that your buyer doesn’t have a definite answer when it comes to your contract. Also, once you receive the contract, go over it in detail, and if you have any questions, call your buyer and ask them immediately. In most cases, if you delay in signing for whatever reason, the contract becomes valid, and you are obligated to fill it. Many producers believe that if they do not sign a contract, then they are not obligated to fulfill it, and that is simply not the case in most contractual situations.

Grain Prices Over Time

Grain prices have been collected and published previously by Laura Telford (MAFRED), and more recently by OrganicBiz. The Prairie Organic Grain Initiative has gathered those grain prices from 2012 onward, and created the following charts to display trends over the years.

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Wheat Prices

November 2012 – November 2018

Feed Barley Prices

November 2012 – November 2018

Feed Pea Prices

January 2014 – February 2018

Feed Corn Prices

August 2013 – July 2018

Flax Prices

January 2013 – October 2018

Lentil Prices

May 2015 – November 2018

Pea Prices

February 2016 – November 2018

Oat Prices

November 2012 – November 2018

Malt Barley Prices

February 2016 – May 2018

Soybean Prices

February 2013 – September 2018

Hemp Prices

May 2013 – March 2017

Mustard Prices

January 2014 – June 2018

Grain Buyers

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View a list of organic grain buyers and get connected to find the right buyer for your grain harvest.

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