Ontario wheat update

[dalek]

Started combining yesterday. So far looks like it should be running about 80 bu/acre for SWWW which is a bit above average for us, with good quality. Have about 2/3 of our expected yield contracted at 182 and change, and as of yesterday we could still get cash contracts at 147 and change. Don't know what the board price is and don't care, discount on cash contracts downgraded to feed grade is $14 while the board discount is $24

[melvill]

dalek, tell me, does all of the Ontario soft white wheat go to domestic millers (as it does here in the west) or, to your knowledge, is any of it exported?

Second question, does anyone in Ontario grow soft white spring wheat?

I wonder if there is any quality difference between soft white winter and soft white spring wheat. Anyone know?

[dalek]

As far as I know it's all milled here, and as for spring wheat, there may be some, probably particularly in Northern Ontario, but most spring wheat is Hard Red.

[eatmorewheat]

Soft white spring wheat has been grown in Ontario. We have grown some in 1997 and 2002.It yields 50 -55 bu/acre and is a fill in for soft white winter wheat.

It is interchangable with soft white winter wheat. The soft white springs and winters of the PNW are even co-mingled.

[gmj]

We started combining HRWW yesterday, the yield was below average for our farm, but the quality is excellent for a change. There is very low or no fusarium in the winter wheat this year. We marketed 2/3 of our intended production for $8 over the Dec. Feed Wheat futures, to a feed mill in SE Manitoba.

[melvill]

gmj, your decision to take a basis contract at $8 over Dec WCE wheat on 2/3 your HRWW is, in my experience, a pretty large fraction compared to what many producers do here in Alberta (except for guys with electric rain). Is $8 over good for your area?

How will you lock in the Dec futures? Will it be whatever Dec is at delivery or will you be hedging using futures? We've had an upturn in WCE wheat since mid July. Hope you're watching that.

Good luck with harvest.

[gmj]

melvill, we are in the red river valley, where we are almost in an "electric rain" situation every year, our biggest problem has been how do we turn off the rain. This year we are a little on the dry on our farm but only 5 miles away they are dealing with some drowned out spots, it is very spotty this year.
As for $8 over Dec. is good for us because the next best offer I had was $10 under for low vomi, and $24 under for high vomi.
On my farm I run into storage problems, that is why we try to move up to 2/3 of our Winter Wheat and 2/3 of our Oats right of the combine.
We did lock the price in a week ago, and now we are looking for some cheap call options to protect us on an eventual upswing in the spring.
However I won't hold my breath on any sudden upturn in the feed market here in Canada with the BSE crisis not resolved.
I hope to have answered some of your questions.

[melvill]

Good moves on the basis contract and looking for cheap call options, gmj. I assume you're looking at Chicago or Kansas City for the calls. WCE wheat calls trade pretty thinly, if at all.

I enjoyed the fact that you knew what "electric rain" was. I often use that phrase in public speaking because few people know what it means and it's an attention getter.