In early 2013, no one would have bumper crop in that year.
Statistics Canada did not project it.
In August, something happened to change that.
There was no early frost which normally impacts crops.
The conditions were great for the crops.
This would mean a better harvest in the Fall.
Suddenly the various parties started discussions about the bumper crop, the capacities of the elevators, the railway, and others in the supply chain to move this crop was underway.
Crops yields were well above average for all crops in 2013.
Just a basic understanding of the law of supply and demand tells us that less of the crops on the market equals to higher prices and more of the crops equals to lower prices.
And that is what happened in late Fall of 2013.
The issue, as it turns out, was that several farmers were not happy to sell their crop at a lower price and held on to their crop in the Fall and into 2014.
By March of 2014, many farmers were sitting on harvests that were still in their granaries or out on the fields.
And now the grains are coming to harvest from the other part of the globe.
The problem is now that two crops are meeting on the market.
This will result in the price of wheat and other Canadian crops being forced down significantly lower in 2014.
Some Canadian farmers are understandably frustrated about the entire situation.
Those frustrated are still not in a position to get their grain from the fields out to market.
Farmers are blaming the rail company as well as the ineffectiveness of the government to intervene to fix the situation.
The rail company is being blamed for not providing enough services to the farmers while giving more priority to the crude oil and other commodities.
Yet it is reported that 45 boats are waiting in English Bay to load grain for export but the elevators in Vancouver are empty.
Some analysts of the industry are saying that there has always been the opportunity to move grain but certain farmers did not like the low price of wheat in the Fall season of 2013.
The price for wheat was less than the price for the same period the year before.
Those farmers that accepted the lower price were able to move their grain.
Those farmers that held out refusing to sell at the lower price are the ones facing the issue in March of 2014.
The prospect of lower crop prices for wheat, canola, and barley, starting in Spring of 2014 means that there is more of a reason for Canadians interested in crop prices to watch it closely.
Some Canadian farmers holding out will eventually sell at a lower price due to desperation.
They need to move their crops out of the fields in order to prepare for planting in 2014.
They need to sell their grains to pay for the resources they need for the new farming cycle.
This could see industrial purchasers of grains get a great deal on Canadian grain this year.
Will this cost saving be passed onto the consumers of the end products? Most likely the price of those breakfast cereals will not drop.
Other refined foods made from the wheat also may not see any price reduction even as the corporations focus on expanding the profits.
For consumers to benefit from the bumper crop, they need to purchase the unrefined, unprocessed grains.
Food is power.
Now is an excellent opportunity for Canadian consumers to get back some power by buying seeds and grains cheaply.
Statistics Canada did not project it.
In August, something happened to change that.
There was no early frost which normally impacts crops.
The conditions were great for the crops.
This would mean a better harvest in the Fall.
Suddenly the various parties started discussions about the bumper crop, the capacities of the elevators, the railway, and others in the supply chain to move this crop was underway.
Crops yields were well above average for all crops in 2013.
Just a basic understanding of the law of supply and demand tells us that less of the crops on the market equals to higher prices and more of the crops equals to lower prices.
And that is what happened in late Fall of 2013.
The issue, as it turns out, was that several farmers were not happy to sell their crop at a lower price and held on to their crop in the Fall and into 2014.
By March of 2014, many farmers were sitting on harvests that were still in their granaries or out on the fields.
And now the grains are coming to harvest from the other part of the globe.
The problem is now that two crops are meeting on the market.
This will result in the price of wheat and other Canadian crops being forced down significantly lower in 2014.
Some Canadian farmers are understandably frustrated about the entire situation.
Those frustrated are still not in a position to get their grain from the fields out to market.
Farmers are blaming the rail company as well as the ineffectiveness of the government to intervene to fix the situation.
The rail company is being blamed for not providing enough services to the farmers while giving more priority to the crude oil and other commodities.
Yet it is reported that 45 boats are waiting in English Bay to load grain for export but the elevators in Vancouver are empty.
Some analysts of the industry are saying that there has always been the opportunity to move grain but certain farmers did not like the low price of wheat in the Fall season of 2013.
The price for wheat was less than the price for the same period the year before.
Those farmers that accepted the lower price were able to move their grain.
Those farmers that held out refusing to sell at the lower price are the ones facing the issue in March of 2014.
The prospect of lower crop prices for wheat, canola, and barley, starting in Spring of 2014 means that there is more of a reason for Canadians interested in crop prices to watch it closely.
Some Canadian farmers holding out will eventually sell at a lower price due to desperation.
They need to move their crops out of the fields in order to prepare for planting in 2014.
They need to sell their grains to pay for the resources they need for the new farming cycle.
This could see industrial purchasers of grains get a great deal on Canadian grain this year.
Will this cost saving be passed onto the consumers of the end products? Most likely the price of those breakfast cereals will not drop.
Other refined foods made from the wheat also may not see any price reduction even as the corporations focus on expanding the profits.
For consumers to benefit from the bumper crop, they need to purchase the unrefined, unprocessed grains.
Food is power.
Now is an excellent opportunity for Canadian consumers to get back some power by buying seeds and grains cheaply.
Source...