Grain handlers should prepare themselves for a busier than normal fall, predicts a grain market observer.
“This year there is maybe a little more pressure to get things sold,” said Charlie Pearson, crop analyst with Alberta Agriculture.
A number of factors are conspiring to create an environment where farmers deliver more grain than normal into the system straight off the combine.
One of those factors dates back to spring when prices were rising.
“This year, because they were bullish, (farmers) maybe don’t have as much (grain) forward priced as they might normally have,” he said.
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That will force some growers to market more of their crop immediately after harvest to generate cash flow for their operations.
Bin space is another concern. It is expected to be at a premium because of what are anticipated to be large wheat and barley crops. Producers facing storage constraints will either pile the crop on the ground or find a home for it in the marketplace.
As well, the wet fall means a larger than usual portion of the crop could be coming off tough and damp this year. Farmers will either have to dry it at home, find a feed mill willing to work with it as is or deliver it to an elevator with drying capacity.
It all adds up to a brisk fall marketing program.
“The new crop supplies will be readily available as soon as they are harvested,” said Pearson.
