THURSDAY, OCTOBER 10, 2013
VOL. 91 | NO. 41 | $4.25
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Malt barley growers expect year to cheer High quality | Huge yields and ideal protein levels BY MARY MACARTHUR CAMROSE BUREAU
Beer drinkers and farmers can rejoice. The Canadian malt barley crop was the largest and best quality in years. Pat Rowan of Anheuser Busch said it’s the largest yielding crop he’s seen in his 30 years of buying malt barley for the brewing industry. “It’s a huge, huge crop,” said Rowan, who added it wasn’t uncommon for farmers to harvest 100 bushel per acre crops this fall. “It’s incredible. The big question is how to store it and how to brew it,” said Rowan, of Winnipeg. Statistics Canada estimated this fall’s Canadian barley production to increase 18.1 percent from 2012 to 9.2 million tonnes. It estimated yields averaged 68.2 bu. per acre, up from 54.1 bu. per acre last year.
Tanner, Shana, Colter and Shyla Froshaug of Minton, Sask., help herd their family’s replacement heifers from their summer pasture in the Big Muddy Valley to their wintering grounds on Oct. 1. | CARLA FROSHAUG PHOTO
Big crop, busy elevators | Growers may have a hard time selling uncontracted grain
With elevators plugged, bearish fundamentals clouding the winter outlook and piles of crop lying in the field, farmers have a challenging marketing season ahead. It’s one in which it’s hard to know what to sell first, what to price and what to hold on to. It’s especially hard this autumn because many elevators are full for weeks to come, so clearing crop for space and then having masses of crop to sell later will be the fate of many farmers. “Once we get through all this harvest pressure, hopefully it will get better,” said Kindersley, Sask., farmer Morgan Nunweiler, chair of the Saskatchewan Pulse Growers
Association, as he helped a neighbour harvest his crops on a warm October day. “For farmers who have piles of grain on the ground, it’s a pretty time-sensitive matter to get those piles moved.” Farmers are grappling with a bumper crop that has stressful side effects. So many farmers have bigger than expected crops that they have too little priced and haven’t arranged delivery for the proportion of their crop that they would normally have booked. Finding elevators that will take uncontracted grain now is impossible in many areas, a vexing concern for any farmer who has run out of storage space and needs to move the crop now before weather and pests
start damaging its quality. It’s also an annoyance for farmers with enough storage space, but who need to sell lots of crop in coming months and now face bad basis levels and a declining futures market. Farm marketing adviser Brenda Tjaden Lepp said farmers face few good prospects for wheat and oilseed prices, so she has recommended her clients price most of those crops. A big corn crop in the United States is going to restrain the ability of any cereal grain to rally this winter, so there isn’t much reason to hold on hoping for a rally. Oilseeds are also well supplied, especially canola, but at least there is steady demand that will sweep up the crop. Therefore, even if prices don’t look good over the winter,
canola will probably be easier to move later in the winter than wheat. However, some special crops actually have bullish fundamentals, so Tjaden Lepp is recommending farmers price less of those crops in the hopes of a late winter to spring rally. “For some (special crops) there’s a better chance of the supply-demand balance changing or coming through this (generally) glutted year better,” said Tjaden Lepp. Edible beans have low supplies and could rally late in the winter, rye has a bullish outlook and even well-supplied peas and lentils could rise if late-season buying comes into the market. SEE MARKETING, PAGE 2
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The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Corp. Publisher: Shaun Jessome Publications Mail Agreement No. 40069240
OCTOBER 10, 2013 Return undeliverable Canadian addresses to: Box 2500, Saskatoon, SK. S7K 2C4
Market to challenge growers WINNIPEG BUREAU
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CROPS | MARKETING
BY ED WHITE
MALT GROWERS, PAGE 2