Originally published on October 8, 2019 on OrganicBiz
Challenging harvest conditions in the Canadian Prairies haven’t impacted organic wheat prices just yet. However, quality concerns could shake up markets in months to come.
Jason Breault of RW Organics in Mossbank, Sask., expected organic wheat that was harvested after the weather turned sour to be feed wheat quality.
“Right now it’s just wait-and-see time,” he commented.
“When samples come in, and we know for sure it’s all feed [quality] wheat, that could affect the market.”
Breault said samples of the crop that got off the fields earlier in the season were in good condition.
“But nobody’s sent us a sample in a couple of weeks or so,” he mentioned.
Spot prices are around C$12 per bushel, with rumours of deferred contracts around C$14 to C$15.
Prices might go up, but because of the carryover I don’t think they’ll skyrocket. – Jason Breault
“If someone needs to sell grain now, we’re taking it for $12,” he said. “Until we know what’s ordered and what’s out there, our price will stay there.”
Breault mentioned that organic feed mills in Saskatchewan are “pretty well caught up” and likely won’t be looking for grain until next May.
“We’re buying because we have contracts out to 2021,” he said.
Carryout from Saskatchewan’s 2018 organic wheat crop was between 1.5 and 2 million bushels. That’s causing the market to be “a bit slow” as most buyers are covered well into 2020.
“Prices might go up, but because of the carryover I don’t think they’ll skyrocket,” said Breault.
“Things are probably going to change, but not before the new year.”