The hub will include various levels of government, industry groups, researchers, farm organizations and other stakeholders, in a bid to solidify the province’s place as a leader in grain research, production and processing.

The two levels of government are providing a combined $20 million over five years to fund projects contained under the initiative. Industry is expected to provide additional monies to bring the total investment to over $33 million.

“Canada continues to be a global leader in agricultural innovation,” said Canadian Agriculture Minister Gerry Ritz in a news release. “This investment will help drive the economy through research, development, commercialization, and collaboration right along the value chain, leading to increased productivity and profitability for our producers.”

The hub will concentrate on three specific areas:

•  The Manitoba Corn Development Initiative which is aimed at increasing total corn acreage across the province.
•  The Functional Food and Feed Opportunities Project, designed to help turn Manitoba-led research into commercial food-processing investments.
•  Targeted agri-food research and development.

“There is an opportunity to make Canada a first choice for investment in cereals research and development,” said Cam Dahl, president of Cereals Canada.

• More from the Manitoba Co-operator: WGRF asking farmers big funding questions

Two projects that are already underway in conjunction with the announcement of the Grain Innovation Hub, include a $1-million investment in agronomic studies on corn, as well as funding to study the effects of different foods on human and animal metabolism.

“By working together strategically, our grains can play a significant role in meeting the dietary and health needs of a growing global population, creating jobs at home and growing the economy,” said Manitoba Agriculture, Food and Rural Development Minister Ron Kostyshyn.

The province estimates 24,000 Manitobans are directly employed by the agriculture sector.

The post Canadian government invests in grain innovation partnership appeared first on Manitoba Co-operator.

The commission has tested 1,140 samples (247 from Manitoba, 538 from Saskatchewan, and 355 from Alberta ) as of Oct. 21, with roughly 95.4 per cent grading No. 1, although samples arriving later may be graded lower due to green seed or other damage. Canola grading No. 1 had a mean oil content of 45.1 per cent (on an 8.5 per cent moisture basis), above the 10-year average of 43.9 per cent and last year’s level of 43.5 per cent.

Crude protein levels for No. 1 canola averaged 19.4 per cent, which is lower than the 2012 mean of 21.3 per cent and below the 10-year average of 21.0 per cent. Protein content on an oil-free basis is 38.3 per cent, which is lower than last year’s mean of 40.6 per cent and the 10-year mean of 40.3 per cent (on 8.5 per cent moisture basis).

Currently, No. 1 canola has a mean chlorophyll content of 11.7 parts per million (ppm) which is lower than the 2012 mean of 17.4 ppm and the 10-year average of 14.6 ppm. However, there are some differences from region to region where some areas may show higher chlorophyll content than others.

Early samples are showing a lower iodine value on the year, with a mean of 111.9 units, which compares to last year’s mean of 113.3 units. The 10-year average for iodine value is 113.6 units.

Glucosinolate content for 2013 has a mean of 9.9 millimoles per gram which is similar to the 10-year average of 10.9 mmoles/g.

The post Canola testing high for oil content appeared first on Manitoba Co-operator.

The agreement with CN will see Viterra work with the railway to review supply chain key performance indicators, co-operate on planning and forecasting, and address supply chain issues in a timely manner.

“At CN, we know that what gets measured can be improved,” said Claude Mongeau, president and chief executive officer of CN in a release. “We believe our innovative agreement with Viterra will lead to greater supply chain efficiency, from the Canadian Prairie elevators, to the export vessels.

With CP, the agreement will allow the two companies to work together to ensure supply chain reliability and improve service for both farmers and export customers, according to the release.

“Through our scheduled grain service, enhanced systems for car request management, new productivity tools, and customer service agreements, CP is further redefining its models for service reliability and operational efficiency,” said Jane O’Hagan, CP’s EVP and chief marketing officer in a release. “The results of this work are leading to increased carrying capacity for the railway to the mutual benefit of customers such as Viterra and the entire grain-handling system.”

The post Viterra signs service deals with railways appeared first on Manitoba Co-operator.

The government agency’s survey for the period ended July 31 said canola production in Canada during the 2011-12 crop year was on target to hit a record 13.193 million tonnes. This was up from the 2010-11 level of 11.866 million but fell at the short end of pre-report guesses, which ranged from 13.142 million to 14.2 million tonnes.

The fact the estimate was at the low end of pre-report ideas helped to spur some independent strength in the commodity. Adding to the bullish price move were ideas that hot and dry weather, since the survey was taken in July, has hurt canola’s yield potential and that when Statistics Canada updates its production survey in October, the production forecast will be significantly smaller.

The advances in canola futures were also helped along by continued hot and dry weather which is said to be hurting soybean yields in the major U.S. growing regions.

The upside in canola was restricted in part by profit-taking as well as by steady farmer deliveries of the crop into the cash pipeline. The advancing canola harvest in Western Canada further capped the upside.

Western barley futures contracts saw some major action during the week, with commercials readjusting positions and adding to some. There was speculation that some of the activity may have been in anticipation of the Canadian government’s intent to remove the monopoly power on barley marketing from the Canadian Wheat Board.

Chicago Board of Trade (CBOT) soybean futures were sharply higher during the week ended Aug. 26. The arrival of hot, dry weather in the major U.S. soybean-growing regions during its critical growth stage provided the momentum that took values up. The advances in CBOT soybean futures were amplified when key technical resistance levels were easily penetrated.

A slight easing of concern regarding the macroeconomic picture among commodity funds and speculative accounts helped to influence the price advances seen in soybeans.

Overbought price sentiment and the disappearance of demand from the domestic and export sectors, tempered some of the upward price momentum.

CBOT corn futures were up significantly on the week, with the gains continuing to reflect the loss of yield potential and the extremely tight corn supply situation in the U.S. A little less uncertainty regarding the macroeconomic picture, combined with some chart-based fund demand, also influence some of the price strength in corn.

Wheat futures at the CBOT, Kansas City (KCBT) and Minneapolis (MGEX) exchanges also posted some pretty good gains during the reporting period. Ongoing disease and yield issues for the U.S. spring wheat crop continued to offer some support. Talk of quality problems with Germany’s wheat harvest contributed to some of the advances, as did spillover from the upside seen in both corn and soybeans at the CBOT. The upside in U.S. wheat futures was restricted by the larger-than- expected Canadian wheat production forecast from Statistics Canada and the absence of fresh demand from exporters and domestic end-users. Canada’s all-wheat production estimate of 24.076 million tonnes was at the high end of expectations and topped last year’s 23.167 million.

LACKS ON FLAX

The StatsCan survey released Aug. 24 failed to provide any really big surprises other than the ones mentioned, but a number that seemed to have escaped a lot of scrutiny was the flaxseed forecast.

StatsCan pegged Canada’s 2011-12 flaxseed crop at a measly 365,000 tonnes. Pre-report expectations had called for the crop to be at least in the 445,000-to 531,000-tonne range. In 2010-11 flaxseed production only totalled 423,000 tonnes.

Participants felt that even with reduced demand from Europe because of Canada’s CDC Triffid issue – and with talk that Ukraine will capture a big chunk of Canada’s previous export market, as that country has a large flaxseed harvest – supplies of the commodity on the Canadian Prairies are going to drop to some very uncomfortable levels in the new crop year.

There were ideas that cash bids for flaxseed as a result could claw their way back to higher ground. While the highs of C$15 per bushel may be a little wishful, a push back toward those levels should be possible.

Meanwhile, weather concerns are going to continue to dictate the movement of CBOT soybeans and, in turn, canola over the next while. The general feeling among U.S. participants is that there will be a further deterioration in the U.S. soybean crop condition rating, which should be conducive for further price advancement.

A key factor to watch moving forward will be the September production forecast from the U.S. Department of Agriculture for the major U.S. crops. Given the inaccuracies of early pod counts in determining the final yield U.S. soybean yield, the September production forecast is uncertain.

Dwayne Klassen and Phil Franz-Warkentin write for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

———

Forthree-times-dailymarketreports

Canada,visit“ICEFutures Canadaupdates”at

www.manitobacooperator.ca.

———

DWAYNE KLASSENCNSC

The post Canola Trade Bullish Despite Big Forecast appeared first on Manitoba Co-operator.

The upside in canola was hard earned in view of continued worries over global macroeconomics and the fact that most participants believe weather conditions have been extremely beneficial for the development of the canola crop across most areas of the Prairies.

The lack of aggressive demand from end-users, as they await new-crop supplies, also was an undermining price influence. The lack of fresh export demand for Canadian canola, despite a pull-back in the value of the Canadian dollar, also tempered the upside price potential.

Western barley futures contracts finally saw some price action during the week, with the October contract losing some value when commercials liquidated some of their positions they had open. Meanwhile, cash bids for feed barley in Alberta and Saskatchewan held steady over the reporting period, while in Manitoba there was a slight easing in value.

CBOT soybean futures posted some significant advances during the week ended Aug. 19 with much of the upward price action associated with production concerns. Support stemmed from ideas that August, a critical development month for the U.S. soybean crop, has been enduring some extreme heat. This in turn has sparked concern that the yield potential of the crop has been severely reduced.

The upside in soybeans was restricted by the ongoing worries over the global economy, as speculators and commodity funds did not hesitate to bail out of their agricultural commodity positions when the North American equity sector showed signs of faltering.

CBOT corn futures were up on the week, but the advances were only modest in comparison to the previous reporting period. Ongoing sentiment that U.S. corn output will be much lower than anticipated continued to fuel steady demand for the commodity at the CBOT.

The upswing in corn values was restricted by the worries over the global economy and by sentiment that corn futures had climbed too high, too fast. The upward trend in the value of the U.S. dollar also continued to scare off fresh export demand for U.S. corn and further tempered the upward price momentum.

Wheat futures at the Chicago, Kansas City and Minneapolis exchanges were up significantly during the reporting period. Much of the price strength seen in both CBOT and KCBT wheat came from the huge jump in Minneapolis wheat futures. Concerns that the area seeded to the spring wheat crop in the northern-tier U.S. states was actually much lower than reported helped to spur some of the buying. Adding to the strength were concerns that yields have been reduced by poor growing weather, and that the quality of the U.S. spring wheat crop has also taken a turn to the downside. Reports of disease issues only served to amplify the strength in MGEX wheat values.

COUNTRY-OF-ORIGIN UNLABELLING

There were more than just a few eyebrows raised by news the MGEX will drop the U.S. origin stipulation for wheat delivered against its hard red spring wheat futures contract starting with the May 2013 contract.

The speculation in the market among participants is that by doing so, the MGEX will attract further usage of its contracts from the Canadian side of the border.

ICE Futures Canada is also planning on launching a wheat futures contract when the Canadian government introduces legislation that will end the Canadian Wheat Board’s single- desk power over the marketing of Prairie wheat, durum and barley with the start of the 2012-13 crop year.

ICE officials acknowledge that there will be some loss of business to the MGEX, but overall there will be enough demand of the marketing tool to make the futures contract viable.

Statistics Canada will release its first production survey of the season on Aug. 24, with most industry participants anticipating some large crop forecasts.

There has been, and continues to be, a lot of debate about the impact on production from the late start to seeding and the extremely wet and cool conditions at the start of the growing season. The general rule of thumb at present is that the hot conditions during June, July and August allowed development of the various crops to catch up to more normal growth patterns.

There have been producers who have tried to convince the industry that yields have suffered greatly. However, there are others who claim they have never seen such strong yield potential as they have this year.

The price outlook for flaxseed is not as rosy as it once was. There has been a slow decline in cash bids for flaxseed in Western Canada as the ending stocks picture for the crop continues to climb. Prices for the commodity in the cash market were seen declining further, given that European demand for the crop in Canada is way down and could decline further.

There is much speculation in the trade that European outlets will be sourcing a large portion of their annual import needs from the former Soviet Union instead of Canada.

Dwayne Klassen and Phil Franz-Warkentin write for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

———

Forthree-times-dailymarketreports

Canada,visit“ICEFutures Canadaupdates”at

www.manitobacooperator.ca.

———

DWAYNE KLASSENCNSC

The post Canola Futures Fend Off Weather-Related Bearishness appeared first on Manitoba Co-operator.

The varieties in question include; CDC Kestrel; CDC Clair; CDC Harrier; CDC Falcon; and CDC Raptor.

The CGC announced its plans to reclassify some CWRW varieties in response to feedback from farmers and other stakeholders of the Canadian grain industry. It was felt that the CWRW class should reflect milling quality. Continuing to include varieties with high yield but low milling quality in the CWRW class affected the overall ability of this class to compete in global markets, said the release.

“We recognize that producers grow these varieties for a reason,” said Canadian Grain Commission chief commissioner Elwin Hermanson in the release. “By reclassifying these varieties, we are making sure that the classification system meets the needs of Canadian grain producers.”

In response to concerns about the quality consistency in the CWRW class, the Canadian Wheat Board initially split the class into two categories: Select and Generic. Select varieties were those that had a minimum of 11 per cent protein and high milling quality. Generic varieties did not often meet this minimum protein requirement, but tended to be high yielding.

Effective August 1, 2013, all Generic varieties in the CWRW class will be moved to the CWGP class. All Select varieties will remain in the CWRW class, said the release.

While CDC Falcon is scheduled to be reclassified on August 1, 2013, the CGC will extend the transition period for CDC Falcon, if insufficient alternative varieties are available on August 1, 2013.

The post CGC Reclassifies CWRW Varieties appeared first on Manitoba Co-operator.

The CGC advises that wheat varieties Snowwhite 475 and Snowwhi te 476 belonging to CPSW class were deregistered effective April 28, 2011. However the CGC extended the period eligibility for these varieties until July 31, 2011. Effective August 1, 2011, these varieties will only be eligible for delivery into the grade Wheat, Canada Western Feed, said the release.

The CGC advises that wheat variety Garnet belonging to the CWRS class will be deregistered effective August 1, 2013. This variety will only be eligible for the feed grade, said the release.

The CGC advises that the varieties CDC Mons, and CDC Normandy belonging to flaxseed, will be deregistered effective August 1, 2013. These varieties will only be eligible for the grade Flaxseed, 3 Canada Western/Canada Eastern, said the release.

“Know what you grow. That’s what we’re asking Canadian grain producers to do. When you know that you’re growing registered grain varieties, you help maintain Canada’s reputat ion for market ing high-quality grain and you help preserve access to key international markets for your grain,” said Elwin Hermanson, chief commissioner of the Canadian Grain Commission, in the release.

“The Canadian Grain Commission is committed to helping you stay informed about variety deregistrations and has implemented a three-year deregistration protocol. As part of this, every August 1 we tell you which varieties will be deregistered. This gives you time to make seeding decisions that work for you,” said Hemanson in the release.

The post CGC Announces Grain Variety Deregistrations appeared first on Manitoba Co-operator.

The agreement between CentrePort, CN Worldwide, Canadian Pacific Logistics S o l u t i o n s , Mi n s h e n g International Freight Co., and Shanghai Invent Logistics &Technology Co., originally announced on May 10, calls for the development of a new containerization and transportation project in Manitoba that would lead to exports of locally grown agricultural commodities, such as soybeans, peas, and canola meal.

Diane Gray, president and CEO of CentrePort Canada described the agreement as “a significant step forward” in increasing trade with China. “Manitoba agricultural products are in demand and this partnership will allow us to co-ordinate the export of these products from local producer to international marketplace. This project will also help us maximize the use of the tremendous rail assets that exist in Winnipeg.”

The agreement aims to strengthen the economic ties between the Chinese and Canadian interiors “so we can realize the seamless connection of the two markets,” said Jack Sheng, president of Shanghai Invent Logistic &Technology Co. in the release.

“China’s demand for agricultural products and other resources continues to surpass expectations. With integrated delivery solutions, the sourcing of Canadian products destined to Yangtze River interior markets positions all partners in the supply chain for success,” said Sean Goff, the Shanghaifibased general manager, Asia, for CN Worldwide in the release.

CentrePort Canada is the country’s first trifimodal inland port, offering access to export logistics and transportation by rail, road and air. The 20,000- acre inland port is located next to the James Richardson International Airport in Winnipeg and is also designated as Canada’s first Foreign Trade Zone, or FTZ.

The post Agreement Reached To Increase Manitoba Farm Exports To China appeared first on Manitoba Co-operator.

Concerns about lost acreage to canola this spring and the continued excessively wet growing conditions in eastern Saskatchewan and western Manitoba helped restrict the price declines in canola. There were ideas stemming from the Canadian Wheat Board’s projection during the week – forecasting an estimated 6.5 million acres of cropland will go unseeded this spring – 1.5 million to just over two million acres will consist of canola.

There was also justification to keep a weather premium in the canola market, which further helped limit price weakness. Market participants noted canola development is running well behind normal, which will translate into a late harvest. The late harvest will make it a little hard for grain companies to fulfil export commitments made for late-August/early-September delivery. The late development of the canola crop also leaves it extremely vulnerable to an early frost.

Western barley contracts on the ICE platform were ignored by the trade during the week. Cash bids for barley in Western Canada, however, continued to hold steady to firm.

ABOVE EXPECTATIONS

CBOT soybean values suffered significant declines during the week ended June 17 in reaction to the favourable weather conditions that have increased seeded area to the crop in the U.S. and improved the yield outlook. There were already ideas that soybean yields will come in well above early expectations.

The absence of fresh demand from the export and domestic sectors contributed to the price weakness, with the cheap availability of the large South American soybean crop also contributing to the bearish price sentiment.

Corn futures at the CBOT posted sharp declines during the reporting period on the heels of profit-taking and chart-based speculative and commodity fund liquidation orders. The weather in the U.S. corn belt, which has also seen significant improvements and bolstered new-crop production prospects, contributed to the price declines.

Wheat futures at the CBOT, KCBT and MGE also suffered some significant price declines during the week ended June 17. Producers’ ability to make some progress in seeding the U.S. spring wheat crop in the northern-tier states helped fuel some of the weakness, as did the favourable weather for the harvest of the U.S. winter wheat crop. Continued reports from the winter wheat harvest suggest the yield potential is significantly better than anticipated.

Market participants are now looking ahead to the Statistics Canada acreage update survey due out June 23. Some individuals are looking to the report to get a better handle on what actually went into the ground this spring. Some, however, are already indicating the report will not provide a good insight on what was actually seeded, as producers were still in the midst of trying to get a crop into the ground, particularly in eastern Saskatchewan and western Manitoba.

The StatsCan survey was scheduled to be taken from May 24 to June 3.

The problem with the survey surrounds the timing. Producers, in answering the acreage question, may have been overly optimistic in their responses, thinking there was still plenty of time to seed, based on input from the trade.

Granted, producers took to aerial seeding and harrowing like heck in an effort to be eligible for crop insurance, but these market participants are now wondering just how successful this was, given the continued wet conditions.

Most individuals in the grain trade believe the acreage survey will show lower numbers than the April 26 results, which were for the end of March. However, the final numbers will still need to be lowered further.

Concerns over the state of the global economic recovery was again a dominant feature in the marketplace during the week, as speculators and commodity funds alike continued to bail out of positions in order to avoid any kind of financial loss. The continued debt crisis in Greece has unsettled a lot of global investors, with poor economic data coming out of the U.S. also unnerving a lot of individuals.

A lot of this bailing out has to do with the fact that in the last big push-up in commodity values, these participants lost significant value in their investments by not liquidating while they had a chance. As a result, those participants have started to ignore normal market influences, creating some extremely volatile price swings.

– Dwayne Klassen writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

———

Forthree-times-dailymarketreports

Canada,visit“ICEFutures Canadaupdates”at

www.manitobacooperator.ca.

The post U.S. Crop Futures A Victim Of Growers’ Success appeared first on Manitoba Co-operator.

Adding to the bearish price atmosphere in canola were the declines exhibited by Chicago Board of Trade (CBOT) soybean and soyoil futures. Increased competition on world oilseed markets from a larger-than-anticipated soybean crop in Brazil and Argentina added to the weakness.

Tempering the downside in canola were continued concerns about what the weather has done to the production outlook for the crop. Some of the worries lie around just how many acres won’t be seeded this spring in eastern Saskatchewan and western Manitoba. The need to reseed canola in northern Saskatchewan and northern Alberta because of frost also contributed to the worries. The late seeding of canola in the eastern regions of the Prairies also has left the crop vulnerable to an early frost.

A lot of industry participants are now waiting for the release of the June 23 acreage survey from Statistics Canada to confirm the lost canola seedings.

Western barley futures on the ICE platform actually saw some volume during the week, with commercials generally bailing out of July ahead of it becoming a cash delivery month. Cash bids for barley in Western Canada, meanwhile, continued to see some strength.

CBOT soybean values traded down during the week ended June 10. The U.S. Department of Agriculture’s supply/demand balance sheets, which found extra supplies of soybeans, encouraged some of the downward price action. Sentiment that soybean area will be larger than anticipated also sparked some of the price weakness. Some of the declines experienced by the commodity also reflected ideas that prices were overbought and in need of a downward correction.

Corn futures at the CBOT managed to post advances during the reporting period with the USDA report, which confirmed that supplies of both old-and new-crop corn were a lot tighter than expected, prompting much of the upward price movement.

The slow pace of farmer deliveries of U.S. corn into the cash market helped to influence some of the price gains.

Wheat futures at the CBOT, Kansas City and Minneapolis exchanges all suffered some significant price setbacks during the week ended June 10. Improved weather in some of the world’s wheat-growing regions stimulated some of the weakness. The start of the U.S. winter wheat harvest and reports of better-than-anticipated yield potential contributed to the price declines.

FEDERAL FORECAST

The market analysis branch of Agriculture and Agri-Food Canada released its latest supply/ demand outlook with the projections for ending stocks for certain crops definitely worthy of note.

The 2011-12 carry-out projection of canola in Canada of 650,000 tonnes – if achieved – can be classified as extremely tight, considering AAFC had originally anticipated ending stocks to come in closer to 850,000 tonnes. The 2010-11 forecast of 700,000 tonnes can also be described as tighter than the industry desires.

The low 2011-12 stocks forecast was linked to the tight 2010-11 carry-in supply of canola and the fact that demand from China, the U.S., Mexico and Pakistan will remain extremely strong.

The Canadian barley supply situation is also drawing a lot of attention. The agency predicted that barley stocks at the end of the 2011-12 crop year will be a tight 800,000 tonnes – possibly a record low. Carry-over of barley in 2010-11 was seen coming in at 1.25 million tonnes, which can also be classified as being on the tight side.

A pickup in export demand and domestic usage of the crop as feed, along with the tight carry-in supply, was associated with the extremely small carry-out forecast for next year.

With the tight supply situation for both canola and barley, prices should respond to the upside at an appropriate time.

I’ve been told that producers with barley in Manitoba have already been able to obtain as much as $5 a bushel from the commercial elevator system, which is pretty much a record in itself for the province.

Some market participants felt the tight AAFC ending stocks forecast for barley just can’t happen, with demand either from the export or the domestic sectors having to be rationed in order to avoid this situation. The only way to ration demand is to raise prices.

Canola bids should also continue to move to higher territory, but the strength will be very dependent on just how good the crop that was seeded in Western Canada really is.

Sources continue to comment on how good everything is for the development of the recently seeded canola fields in western Saskatchewan and over most of Alberta. However, there is also plenty of time for additional weather scares to develop.

Dwayne Klassen writes for Commodity News Service Canada, a Winnipeg company

specializing in grain and commodity market reporting.

———

DWAYNE KLASSENCNSC

———

Forthree-times-dailymarketreports

Canada,visit“ICEFutures Canadaupdates”at

www.manitobacooperator.ca.

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