THURSDAY, AUGUST 15, 2013
VOL. 91 | NO. 33 | $4.25
SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923
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TYSON SAYS NO TO ZILMAX | P80
THIS MIGHT HAVE SCORED WELL IF IT WAS A SYNCHRONIZED SWIMMING EVENT
Avery Cool and his mount both make unexpected landings during the mutton busting competition at the Strathmore, Alta., Stampede held Aug. 2-5. |
MARKETS | CANOLA
Low protein wheat likely to see price discounts
Is canola’s bloom finally fading?
Grade factors bigger issue than protein this year
u|xhHEEJBy00001pzYv$:. AUGUST 15, 2013 Return undeliverable Canadian addresses to: Box 2500, Saskatoon, SK. S7K 2C4
Whether futures will recover or continue to fall depends on the harvest BY SEAN PRATT BY ED WHITE
SASKATOON NEWSROOM
WINNIPEG BUREAU
Price discounts are likely to appear on low protein spring wheat this year due to shifting market fundamentals, say market analysts. “One of the big hindrances is the current protein levels on our winter wheat harvest have been just tremendously high,” said Jim Peterson, marketing director of the North Dakota Wheat Commission. The U.S. hard red winter wheat crop has an average protein level of 13.1 percent based on 390 of an expected 500 samples, according to U.S. Wheat Associates. CONTINUED ON PAGE 3
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As Franck Groeneweg scouted canola fields at lunchtime on Aug. 9, he was blissfully free of the volatility going on in the markets. But as he looked at the thick, good condition crop sprawling across his fields, he hoped for two things: A late frost date so he could get it all in safely, and a return to the kind of prices farmers could lock in just six weeks earlier. “Looking at that first frost date, I’m happy I’m not more than 50 percent sold,” said Groeneweg, an Edgeley farmer who is vice-chair of SaskCanola.
FILE PHOTO
“But we should be OK.” Adding to the anxiety farmers might feel over the frost risk this
fall, with many farmers like Groeneweg estimating their crops are two weeks behind normal development, is the sudden evaporation of much of this year’s potential profitability. For most farmers, $12 per bushel canola seemed a safe assumption heading toward 2013-14, since new crop canola futures stayed in a range of $520 to $570 per tonne for about 10 months. But then canola futures slumped, skidding downward through July and into August, barely keeping above $480 after bouncing off $475. SEE CANOLA’S BLOOM, 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
MARKETS | WHEAT
KEVIN LINK PHOTO