October Market Report

Posted on October 16, 2013 · Posted in News

Agrocorp International Canada has announced it has entered into a purchasing agreement with Central Alberta Transloading Terminal.  “This is a tuck in facility providing traction in a great growing area for grain and pulses that we have procured from for many years”, said Colin Topham Managing Director of Agrocorp Canada.  Agrocorp Canada is presently finishing up their high throughput greenfield facility in Moose Jaw Saskatchewan and continues to look for growth in its asset expansion strategy in Canada.  “We have worked with this facility over the years and it is fits our acquisition strategy of having good rail access and service, and a solid management team which we will be looking to grow”.

Prairie harvest is wrapping up and what a harvest it was!  From the late start, to reports of disease and flooding, we were bracing ourselves for quality and supply problems.  A late-August heat wave pushed the maturity to near normal, and with growers impressive fleets of high-capacity harvesting equipment, they moved record yields into storage with unprecedented efficiency.

As is typical with a huge harvest, prices have lowered across the board on every commodity.  Even though farms have significantly expanded in-house storage, everything is full to the rafters with reports that temporary storage like grain bags being sold out from virtually every vendor.  As such, the mainline grain terminals are booked to capacity along with most of the transloading capacity in Vancouver through the remaining months of 2013.  Most growers participated in production contracts at good levels, and most have met their fall cash flow needs along with addressing their on-farm storage.  In short, most growers have sold what they intend to sell, and at current prices common sentiment is that they are content to wait and see if prices improve before selling their pulses.

It is important to note that while growers are content to wait, markets in most consumption destinations are well supplied and buyers are completely snake bitten from accumulated losses incurred over the past dozen months of trying to execute purchases/sales in a declining market.  With every rally in prices, we would feel that this turbulent market was finally stabilizing only to have another retraction and the subsequent fallout.

In terms of quality, the Canadian green and red lentils are excellent with most production easily maintaining a top-end #2.  Chickpea harvest is in full swing, with the early harvested portion having excellent yields and qualities.  Green peas were a phenomenal success, with good yields and very good quality.  Yellow peas also finished with above average yields.

I am continually in awe of how masterfully the Canadian grower manages their operations.  From seeding to fertility to crop protection to harvesting, they operate with a surgeon’s precision and expertise to produce the absolute maximum quality and yield possible in any given set of conditions.

Our facility in Moose Jaw is currently being commissioned and we have increased the staffing to meet the realities of having a plant up and running.  We will be taking our first off-farm deliveries during the second week of October, and look to keep the pedal to the metal from there.  Give our Moose Jaw office a call regarding pricing and delivery options.  My feeling on the market is that prices should remain stable at current levels for the rest of the calendar year, so I would recommend selling sooner to ensure the grain you need moved is out of your hair for things like fertilizer deliveries.

Agrocorp International is a global agriculture commodity trading house moving over 3 million metric tons of grain, pulses, oilseeds, beans and sugar annually.

For all trade inquiries please email us at trade@agrocorp.ca 

Colin Young

Agrocorp Processing Ltd.
Box 1118
Moose Jaw, SK
S6H 4P8

Phone (306)693-8887
Fax (306)693-8880