Winnipeg, Manitoba
October 18, 2007
Ken Ritter, chair of the
Canadian Wheat Board's
farmer-controlled board of directors, today responded to
inaccurate information about barley prices.
Yesterday in the House of Commons, Prime Minister Stephen Harper
said: "When it looked like there would be marketing choice for
western barley farmers last spring, prices went up. When
marketing choice was swept off the table, prices went down."
Ritter pointed out that barley prices have been climbing
steadily and that the Prime Minister's comments create the
mistaken impression that barley prices move up and down only in
response to the prospects of an open market.
Ritter says the full story shows that from June 11 to July 31,
2007, grain companies anticipating an open barley market were
offering farmers contracts of up to $4.75 per bushel for malting
barley. However, since the federal court decision of July 31,
which upheld single desk marketing of western Canadian barley,
markets have climbed steadily to the point where the CWB is
projecting returns for farmers of up to $5.06 per bushel at an
Alberta farmgate. This estimated return may continue to rise as
the CWB makes more sales at record values.
"Grain markets are governed by many factors, including supply
and demand, competition, quality and customer preference," said
Ritter. He noted that Prairie farmers can expect significantly
higher returns this year than their American counterparts, due
to the disciplined selling of the CWB.
For example, according to the president of the Washington Wheat
Commission, many American farmers sold their wheat before the
recent price surge - much of it at less than $5 per bushel. The
CWB is indicating a return of $6.76 per bushel for No. 1 Canada
Western Red Spring wheat 13.5 per cent protein, backed off to an
Alberta farmgate.
In the case of durum, a high-quality pasta wheat, U.S. spot
values are rising because many American farmers priced at around
$7 per bushel when they thought the market had peaked, according
to the marketing director of the North Dakota Wheat Commission.
The CWB has been able to capture rising market values, recently
making sales of Canada Western Amber Durum wheat at values as
high as $18.50 per bushel.
Controlled by western Canadian farmers, the CWB is the
largest wheat and barley marketer in the world. One of Canada's
biggest exporters, the Winnipeg-based organization sells grain
to over 70 countries and returns all sales revenue, less
marketing costs to farmers. |
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