From the point of view of market development, growth in soybean production has been associated with greater demand for locked in forward contract prices. GEC has responded to this through its offering of competitive forward pricing contracts, available as result of the business relationships we have developed with a number of national grain companies, local brokerage firms, or crushing plants in the Atlantic Provinces and Quebec. More opportunity to sell means greater upside price potential for the grower. While forward contract prices for soybeans are slightly lower than last year, the forward contract option remains attractive to growers. Bookings for 2012 new crop soybean contracts have commenced. The reader is encouraged to contact Neil Campbell at 836-8942 for a competitive price quote.
On the other hand, there remains the opportunity to market all or part of the crop through the traditional soybean pooling arrangement. In times of unsettled prices, pooling can remain a viable and attractive option.
Quality problems associated with milling and feed wheat were not as severe in 2011. Both milling and feed wheat growers had better results with DON levels this past year. With reasonable weather, quality seed, and aggressive fungicide spray control programs, wheat may once again play a role for some, as a profitable rotation crop.
For crops such as barley, the stronger corn price, and robust local demand has meant higher prices for the barley crop which is good news for grain growers, given the recent collapse of the local hog industry. On the other hand, fusarium testing carried out on the barley crop suggests that the fusarium levels are becoming a determinant in assessing the quality and price of barley as feed. It follows therefore, that two row toxin resistant varieties of barley should be prominent in growers cropping plans.
Markets for feed wheat remain stable with reduced local supply available, and stronger demand encouraged by the local aquaculture and supply managed sectors. The bio fuel market has taken up the slack for discarded high toxin grains; albeit at strongly discounted prices ($60.00 per metric tonne). Efforts are being taken to create an alternative market for waste grain. The livestock cattle sector offers some blending opportunities.
Approximately 1,200 mt of oats were delivered to all three GEC locations. Even though the quality of oats was inferior to the previous year, a short supply and strong demand for oats has kept the local price strong.