Winter wheat growers once again have a premium market contract for select varieties they plant this fall.
Andrea Hilderman of the Canadian Wheat Board said the market development Canadian Western Red Winter select contracts covering 62,500 acres of western Canadian winter wheat now being harvested are available again in 2004.
“We hope to have producers taking advantage of 120,000 acres of the contracts for this coming season,” she said.
The contracts are for the varieties AC Bellatrix, AC Readymade, AC Tempest, CDC Buteo, CDC Osprey, McClintock, Radiant and Norstar.
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They have been chosen for testing of milling qualities and marketing in Thailand and Malaysia, where they compete with U.S. hard red winter wheat.
“It’s a tough market. (South Asian millers) want 300,000 tonnes of the stuff, a steady year-round supply,” Hilderman said.
“We have a few boats (loads) here and there. But it’s really well accepted and we need to work on building demand and supply.”
Prices have been landing between No. 2 and No. 3 Hard Red Spring wheat, but the varieties have significant yield and agronomic advantages over their spring cousins.
The contract is similar to the previous one with a $10 per tonne contract premium and protein premiums paid on every 0.1 percent of protein between 11.5 and 14 percent.
Farmers will also be paid for storage: three cents per tonne for the first 90 days; five cents for 91 to 180 days and seven cents from 181 to termination or delivery, with guaranteed delivery.
“These market development contracts often do need the storage component as it takes timing to market the grain properly,” Hilderman said.
Part of the timing involves assembling and maintaining variety specific exports. As a result, producers must be able to properly identify their varieties at delivery to the elevator.
Farmers can sign up for the new contract until Oct. 15.
She said delivery contracts for the current harvest will be mailed to last fall’s applicants in mid-August and protein premium payments of 30 cents per 0.1 percent will be paid along with storage fees.
