Under the expanded program, sign-up after Aug. 1 will be subject to an adjustment factor that reflects actual CWB pricing activity to that date. For more information, go to http://www.cwb.ca/ppo , and then select the 2011-12 FlexPro link.

• Winter wheat growers are reminded that a new 11-per-cent protein minimum will be in effect on August 1 for Canada Western Red Winter (CWRW) wheat to qualify for the top two grades. A No. 3 grade has also been newly introduced by the Canadian Grain Commission. The changes are designed to help Prairie winter wheat become more competitive in the international market place and ensure the CWRW class consists of milling-quality wheat. In addition, in two years (effective August 1, 2013), a number of varieties will be moved from the Canada Western Red Winter (CWRW) class to the Canada Western General Purpose class. They are CDC Kestrel, CDC Clair, CDC Harrier, CDC Falcon and CDC Raptor.

•The CWB terminated the 125- to 200-per-cent values under its 2010-11 Early Payment Option program for feed wheat and Nos. 4 and 5 Canada Western Amber Durum (CWAD) on Friday, July 15, 2011. 

• July 29 is the deadline for farmers to sign-up a 2010-11 Early Payment Option contract or lock in a price under the 2010-11 FlexPro program.

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The distribution will be a flat per-tonne payment, calculated from all surplus earnings achieved (if any) over the entire marketing year from CWB feed-barley cash sales. It will be paid equally to all farmers who participated in feed-barley GPCs, after the marketing year is finished.

The CWB said it is important to note that a surplus payment is not guaranteed, particularly in the face of extreme market volatility, and that farmers should base their decisions to participate on whether they find the up-front payment attractive.

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The CWB noted that farmers may, alternatively, choose the CWB’s Early Payment Option (EPO), which  provides similar returns to the CWB pool accounts, less a discount. The EPO allows farmers to receive an additional payment, on top of the initial, within 10 business days of delivery. EPOs are available at values equal to 80, 90 and 100 per cent of the PRO.

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Producers are reminded to lock in their 2009-10 FlexPro tonnage by the sign-up deadline of 9 p.m. on Friday, July 30, 2010. If FlexPro contracts are not priced by this date, they will be automatically priced by the CWB at the price posted for that day.

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The all-wheat yield estimate announced by the CWB, at 33.4 bushels per acre, is the lowest initial projection in seven years.

“Cold weather across the Prairies this spring has had a detrimental effect on planting and early crop development in most growing regions, said Bruce Burnett, CWB director of weather and market analysis, at the annual CWB grain industry briefing Thursday.

“In addition, soil moisture levels are dangerously low in parts of Alberta and western Saskatchewan, where dry conditions have persisted since last fall.”

While the western Prairies are abnormally dry, Manitoba has been excessively wet this spring, with seeding still incomplete. Without ideal growing conditions for the remainder of the crop year, below-average production is likely for Western Canada.

Wheat, durum and barley crops are currently about 10 days to two weeks behind normal development due to the cold weather. Production estimates have dropped significantly in the past two weeks from what had been average yield expectations.

“As cool weather delays crop emergence, the risk of reduced quality or frost damage this fall increases,” Burnett said.

Non-durum wheat production is expected to decrease to 16.4 million tonnes from 20 million tonnes in 2008, while durum is predicted to drop to 4.4 million tonnes from 5.5 million tonnes last year. The CWB expects barley production to decrease to 8.9 million tonnes from 11.2 million tonnes in 2008. Last year saw the largest western Canadian all-wheat crop since 1996.

Worldwide

The world wheat crop will be down significantly from last year’s record production of 682 million tonnes, particularly given a substantial drop in production in key U.S. winter wheat growing areas. Most key wheat exporting nations are experiencing production problems. Dry conditions have continued in Argentina, which is forecasted to have the lowest seeded area in 100 years. This is likely to result in the second consecutive year of record-low Argentine wheat production. The only major exporter expected to increase production is Australia, where timely recent rains have improved growing conditions after a multi-year drought.

The United States Department of Agriculture (USDA) this week forecast world wheat production at 656 million tonnes. “Any further cuts to global production estimates would result in tighter world supplies, which could be price-supportive,” Burnett said.

However, in North Africa, which is an important market for western Canadian durum, abundant rainfall and near-ideal growing conditions have resulted in a very large durum crop, which will lower this region’s import demand, the CWB predicted.

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Farmers with Series B contracts will be able to haul up to 45 tonnes per permit book holder, prior to the scheduled announcement of acceptance levels for the Series B CWAD contracts.

The CWB said the early calls will enable it to meet nearby sales commitments and provide farmers with earlier delivery opportunity, while allowing the CWB to continue to assess the overall market to determine final acceptance levels.

Full details are on the CWB website.

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The post Feed Barley Values Down Slightly in CWB 2008-09 PRO appeared first on Farmtario.

For a full list of PROs visit the CWB website.

Wheat
U.S. wheat futures have remained extremely volatile throughout the month of April. For example, since the last PRO, Minneapolis wheat futures traded in a range of $0.67 per bushel. Wheat futures in the U.S. continue to receive spill-over support from strong soybean prices. Concerns about Argentine soybean supplies combined with strong demand from China, have significantly strengthened U.S. soybean futures. International wheat values were mixed this past month. European and Australian values held steady while Black Sea values were supported by strong government intervention prices.

Over the last month, basis levels for spring wheat have also weakened significantly on relatively weak demand, although they still remain above the long-term average. Wheat fundamentals remain relatively unchanged from last month despite improved global crop prospects. The International Grains Council forecasts world wheat production at 651 million tonnes, a decline of 36.5 million from last year.

A large carry-in of global wheat stocks will result in the total world wheat supply for 2009-10 increasing, which continues to weigh on the price outlook. Crop prospects in the Black Sea region are favourable, with little winterkill and good yield potential. European crop conditions have also been favourable so far this growing season. In the U.S., dryness and possible frost damage in the southern plains have caused concern for the Hard Red Winter wheat crop. Cool and wet conditions in the northern plains have slowed spring-wheat planting.

The outlook for the Canadian dollar remains very uncertain. At this time of the marketing year, the forecast for the dollar has a significant effect on projected returns for the 2009-10 crop. Over the last month, the general trend has been stronger, but with historically high day-to-day volatility. The dollar has fluctuated between $0.79 U.S. and $0.83 U.S. since the last PRO. Ocean freight rates have decreased this past month and are expected to remain at levels significantly lower than the historically high rates of the past two years.

Durum
The nearby durum market has shown some strength on limited trade over the past month, supported by strong demand from millers. The outlook for new crop remains bearish due to favourable crop conditions in North Africa and strong new crop exports from Mexico. Beneficial rainfall in North Africa maintained good crop conditions during the critical reproductive growth stage. Global durum production is still expected to decrease slightly from 2008, falling just below the five-year average.

Durum production in the European Union (EU) should fall about 20-per-cent short of its total durum usage which will increase imports to the EU significantly this year. Production in North Africa is forecast to increase about 75 per cent from last year, reducing the region’s import needs to the lowest level since the mid 1990s. The 2009-10 durum crop in the U.S. is expected to be slightly smaller than the 2008-09 crop but, with larger carry-in stocks, total supply is projected to be higher, which will add pressure to prices in early summer.

Feed barley
Global barley production is forecast to decrease three to five per cent. Barley production in the U.S. is forecast to decrease by 10 per cent in 2009. However, large carry-out stocks in 2008 will increase supplies year-on-year. Barley production in Canada, the EU and Black Sea is forecast to decrease, while production in Australia and Turkey will increase. Global feed-barley supplies will be adequate in the new crop year as consumption is forecast to decline. Lower freight rates and an increased Canadian dollar narrowed the spread between U.S. corn and western Canadian feed prices this month. Despite this narrowing, domestic barley is still very competitive when compared with corn. World price direction will be influenced by corn and the amount of barley substitution that occurs.

Designated barley
Spring barley prospects remain favourable. Adequate rainfall and above-normal temperatures in the EU have advanced the development of the winter barley crops in Germany and spring field activities across northern Europe. The spread between malting-quality barley and feed barley has narrowed and should remain at more traditional levels in the upcoming crop year. Demand for malting-quality barley is expected to improve slightly from 2008-09.

The post Grain Values Lower in Latest CWB PRO for 2009-10 appeared first on Farmtario.

The total initial payment to date is basis in-store Vancouver or St. Lawrence and must be adjusted for freight/elevation charges to arrive at farm gate prices. A complete listing of payments for all grades in dollars per tonne and dollars per bushel is posted on www.cwb.ca under “Farmers” and “Farmer Payments.”

Farmers who delivered wheat and durum to the CWB between August 1, 2007 and April 16, 2008 will receive an adjustment payment. Farmers who delivered Pool B feed barley between February 1, 2008 and April 16, 2008 will receive an adjustment payment.

Payments by direct deposit will be received on May 2. Cheques will be dated May 2 and mailed by May 6. Farmers who wish to defer payments have until April 23 to notify the CWB by calling 1-800-275-4292.

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