Initial payments for 2007-08 were out of date the moment they were announced.
The payments were approved and released by the federal government Aug. 3, the third day of the new crop year.
But no sooner had the payments been announced than Canadian Wheat Board chief executive officer Greg Arason said the board would ask the government for an increase as soon as possible.
“Given where the markets are and what looks like continuing strength, we think there is a valid reason to ask for an early adjustment for all CWB grains,” he said. He didn’t say how much of an increase would be requested.
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He noted the board sent its original recommendations for wheat and durum payments in early June. Markets have risen significantly since then, as illustrated by the latest pool return outlooks.
The board made no recommendations for barley, given the uncertainty at the time about the future of the single desk. The barley initials were established by government officials.
The new initials, compared with the pool return outlook, are as follows:
- Wheat – The initial for 1 CWRS 13.5 percent protein is $153.70 per tonne or 65 percent of the PRO at $237 a tonne.
- Durum – The initial for 1 CWAD 13.0 percent protein is $147.20 a tonne, or 55 percent of the PRO at $266 a tonne.
- Feed barley – The initial for 1 CW is $107 a tonne. There is no PRO for feed barley.
- Malting barley – The initial for special select two row is $162 a tonne and $144 a tonne for SS six row. There is no PRO for malting barley.
