Canada’s largest grain company wants the Canadian Wheat Board to pump up its export program for the remainder of the crop year.
Saskatchewan Wheat Pool last week urged the board to “aggressively market” the remaining wheat and durum crop before the end of the crop year July 31.
The pool also encouraged farmers to sign up for the Series D delivery contacts on wheat and durum by the May 31 deadline and sell as much as they can into this year’s pool accounts, rather than risk getting a lower price next year.
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Bruce Johnson, executive vice-president of the pool’s grains group, said the company is concerned that slow grain movement will result in an unnecessary carryover of stocks into the new crop year.
“What are we building a carryout for?” he said in an interview. “I would like to see an effort made to move as much grain as we possibly can in the current crop year.”
Wheat exports are down about 40 percent this year, while durum is down 19 percent.
But the board says it can’t be accused of failing to sell farmers’ grain, attributing the drop in exports to last year’s small crop.
The agency has taken 100 percent of the wheat offered by farmers under the board’s first three delivery contracts and will almost certainly take 100 percent of the Series D contact, said CWB spokesperson Deanna Allen. That won’t be true for durum, where supplies outstrip market demand.
As for whether the board will make any special effort to bring in wheat over the next two months, she said producers will determine how much gets delivered.
“That’s up to farmers,” said Allen. “It’s up to them to decide whether they’re going to sign up and whether they want to offer it in this crop year or not. It’s our job to market what they give us.”
Johnson acknowledged an increase in grain movement would also benefit the pool, which like other grain handling firms is feeling the financial effects of the reduced export program. But he made no apologies for looking out for the company’s bottom line.
“The industry has very high fixed costs and our interests are coincidental with producers’ interests in trying to get more grain moved.”
