With an abundance of organic grain available, prices either remained flat in February or were lower, according to three buyers across Canada.
“The markets seem very full right now, to the point that buyers are overbought. Prices however, have not softened like they normally would when they are this full. [There is a] big supply due to above average yields across the prairies are having an influence on the markets, capping prices,” commented Scott Shiels of Grain Millers of Canada in Yorkton, Sask.
Shiels also noted that imports of organic feed grain from the United States have kept a lid on prices in Canada. That has resulted in milling prices levelling off as well.
It’s just a surplus of grain in the market right now. – Andrew St. Jean
Dan Martinello of the Westaqua Commodity Group in Vancouver said they have been feeling the pressure.
“Customers are able to find cheaper inputs and we’re trying to compete with those,” he commented.
Andrew St. Jean of Beechwood Agri Service in Parkhill, Ont. called the organic market “flat and dead” with Beechwood not buying anything at the moment.
“It’s just a surplus of grain in the market right now,” he said, noting prices could be softer come spring.
“We’ll see what the weather throws at us and what this year brings,” St. Jean stated.
Feed barley remained the same from January in Western Canada, with February prices still at C$6 to C$7.50 per bushel. The price range for wheat on the Prairies contracted from C$6 to C$10 per bushel in January to C$7.75 to $9/bu. this month.
In Ontario, there were some price drops with soybeans having slipped from C$20 to C$23/bu. in January to C$19.30/bu in February. And corn, which was C$9 to C$10/bu last month was at $8.40/bu. this month.