Canada Markets

DTN 360 Poll Focuses on 2014 Crop Pricing

Cliff Jamieson
By  Cliff Jamieson , Canadian Grains Analyst
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Last week's DTN 360 Poll asked the question "What percentage of your 2014 production have you priced?"

In total, 62% of respondents indicate that they have priced more than one-half of their crop. Four percent indicated that they had priced 100% of their production, 26% have priced between 75% and 99% and another 32% of respondents have priced between 50% and 74% of their production.

Of respondents who have priced less than half of their production, 22% of respondents indicated that less than 25% of their production is priced, while a further 16% have priced between 25% and 49% of their production.

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It's also interesting to look at the results on a provincial basis. Of the Prairie Provinces, Alberta respondents have priced their crop most aggressively. A total of 10% of Alberta growers answering the survey were fully priced, 40% had priced between 75% and 99% of their production and a further 20% have priced 50 to 74% of their production.

Of the respondents from Saskatchewan, 56% had priced between 50 and 74% of their production. In Manitoba, 13% have priced between 75% and 99% of their production while another 38% had priced between 50% to 74%.

Of all the provinces represented in the survey, Ontario producers proved to be most advanced in their selling activity this crop year. A total of 75% or respondents from Ontario indicated they have priced between 75% and 99% of their production.

Of course, there are many factors that are included in the decision to sell besides price, including the timing of sales to meet cash flows, decisions based on farm storage capabilities as well as the need to book a delivery opportunity in the export or domestic processing pipeline. DTN correspondent and Ontario farmer Philip Shaw provided feedback on the basis implications within the Canadian ag sector due to the exposure of the Canadian dollar's relationship with the U.S. dollar and the need to follow the trend in grain prices but also the trend in the loonie.

Thanks to all those who participated on this and other polls. This week's question is focused on the use of third party grading services. Is there value and do you utilize their services?

Cliff Jamieson can be reached at cliff.jamieson@dtn.com

Follow Cliff Jamieson on Twitter @CliffJamieson

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