Zayacskz/Dreamstime

By Jesse Gill

AGRICULTURE

Price of wheat remains low for farmers

Dec 3, 2024 | 9:58 AM

The price of wheat has dipped since it hit a fall peak in late October of just under $620 per tonne, and even more so since it’s high in June at just under $760 a tonne.

Cypress County producer, Nichole Neubauer said, there is a real glut of global grain supply right now, with the price sitting at just under $545 per tonne Tuesday morning.

“Our industry aligns with supply and demand. There is quite a good supply in the world and that’s driving prices down,” Neubauer said.

“We had some good growing conditions and and quite honestly we’ve used science to our advantage and leveraged that to be more productive all over different places of the world.”

IN THE COMMUNITY

Vigil at Medicine Hat College will honour Montreal Massacre victims, mark day of remembrance and action

1h ago

WHAT'S ON

Top five things to do at the Medicine Hat Public Library in December

Dec 03, 2024

IN THE COMMUNITY

Medicine Hat's YMCA changes name to reflect values, geography

Dec 02, 2024

Neubauer said the longer term outlook is that the strong global supply of cereal crops will continue, with strong crops overseas.

She adds that the midwest United States is a big producer of winter wheat, and those crops are expected to be strong.

Neubauer said some will have the ability to keep their grain in the bins, while others will be forced to sell to cover bills.

“If you’re in a position where you can afford to hang on to it and maybe gamble a little bit to look for a surge in the marketplace that’s what farmers will do,” Neubauer said.

“Certainly for us at this point in time we’ve marketed all the cereals that we’re going to sell. We’re going to just hang on to the rest, we did sell during the peak when there was a bit of a surge. So we’re really thankful for that.”

Neubauer said in Canada where there are freight considerations, and reliability issues, sometimes not being able to get grain into the boats to take it across the world.

Which can shift nations in need of grain to buying a little closer to home.

While tariffs placed on exports can also make Canadian grain less desirable.

Something Neubauer is watching after the election in the United States.

“We’re all looking to see where we end up with the new administration and tariffs and and how that can impact Canadian products heading south of the border as well,” Neubauer said.

Neubauer said for big producers they will generally have full-time market analysts on staff.

“Depending on the volume of grain you’re trying to ship just pulling the trigger and selling a day later, a day early could be the difference between hundreds of thousands of dollars,” Neubauer said.

There is importance for producers to understand the cost of crop production, purchasing things like fertilizer when there are cost savings.

Neubauer says the cost of production has risen steadily over the past 10 years, while the price per bushel of wheat hasn’t varied a lot.

“To put that same Canadian western red spring wheat in the ground and get it into the bin, cost of production in 2014 would be about $594 to $600 and now we’re over $800 per acre to get that wheat in the ground and to get it off,” Neubauer said.

“So input costs whether it’s fertilizer whether it’s seeds and and all of the crop production products every single one of those products have to come to us on a diesel engine somehow and so the price of carbon tax is then passed on to the farmer within that,” she added.

“It’s not the farmer that’s driving the price at the grocery store. We really aren’t making any more on our products,” she added.

“It’s just all the steps along the way that are making it increasingly more expensive for you to put in your grocery cart and take home.”