Deferred delivery proves popular

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Published: September 4, 1997

Farmers delivered more than 1.8 million tonnes of wheat and barley under deferred delivery permits last month.

The Canadian Wheat Board allowed farmers with CWB contracts to deliver into the 1996-97 pool accounts until Aug. 22. For farmers in the Peace River region, the deadline is Sept. 5.

Those farmers received last year’s higher initial payments and paid last year’s lower freight rates.

The grain that came in under the deferred delivery program was what the board had originally expected to be in the system before the end of the crop year July 31, but that didn’t make it because of transportation problems.

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CWB information officer Deanna Allen said the late deliveries shouldn’t have any major effect on returns in the 1996-97 pool accounts.

“Any of the sales made later on would tend to support returns in the durum pool because durum prices have been climbing rapidly,” she said. “For wheat and barley, the effect would be almost neutral.”

The late deliveries will help support a strong export program in what is usually a period of light grain movement.

“Some of that grain started to move in August, but most will likely actually be shipped in September,” said Allen.

The board has a west coast export program of 1.3 million tonnes for August, compared with 725,000 tonnes last year and 867,000 tonnes in 1995.

For September, the board’s projected west coast shipments are 1.1 million tonnes, compared with 830,000 tonnes last year and 474,000 tonnes in 1995.

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