Market Report: October 16, 2024

Well, folks, barley harvest in Northern Alberta is moving slower than a tractor stuck in the mud, which, coincidentally, is how most of our tractors felt at the start of the season. Frequent rains in some parts lately have left us wishing we’d planted rice instead, while some areas didn’t even get a sprinkle.

Barley
Harvest across Alberta and Saskatchewan has been slower than anticipated, with frequent rains delaying progress. As a result, some barley has come off the fields lighter than expected, with quality varying depending on the region. Many producers are dealing with feed-grade barley instead of malt due to the effects of heat stress and moisture issues earlier in the season.

Prices are holding steady at $4.75–$5.00/bu, with feed barley seeing steady demand,  However, freight costs are now playing the role of the party crasher. Rail’s been struggling, and trucking isn’t cheap (thanks to fuel prices!). With local buyers eager to avoid long-distance shipping nightmares, there’s a bit of a premium if you’re nearby and ready to move grain quickly. So, if you’ve got a short commute, it’s your time to shine!

Wheat
Wheat harvest has been as unpredictable as an Alberta chinook. Early yields had us excited, but late-season rain came in like a plot twist nobody asked for, bringing sprouting and moisture problems. Spring wheat’s coming off with mixed results—some high protein, some low, like a crop trying to keep us on our toes.

Prices for #1 HRS wheat are hanging around $6.50–$7.00/bu, depending on how fancy your protein levels are. Freight costs are slicing into margins like a hot knife through butter. Buyers are prioritizing wheat that’s a stone’s throw away because trucking is no small expense, So, if you’re within a short haul to an elevator or processor, you’re in a good position to negotiate.

Canola
Canola harvest in the north has been similarly delayed, with moisture content being a primary concern. Some fields are seeing strong yields, but seed quality is variable, particularly in areas where rain hit late in the growing season. Swathed canola has faced challenges with uneven ripening and moisture, slowing down the overall harvest pace.

Prices for canola are sticking around $12.00 to $13.00/bu, helped by strong demand in crushing and export markets—apparently, everyone still loves a good canola salad dressing. But once again, freight is the ultimate buzzkill. Local buyers are playing matchmaker, looking for quick-move canola they don’t have to ship halfway across the country. Producers with storage capacity may benefit from holding their canola until freight conditions improve or local delivery options expand, as the demand for high-quality canola is expected to remain steady.

Freight Challenges and Price Implications
Freight: the final boss of grain marketing in Northern Alberta. With rail delays and trucking costs as high as the Rockies, producers are scrambling to find nearby buyers or contemplating becoming grain-hoarding dragons. For those without storage, it’s a classic dilemma: do you sell at a discount to keep things moving or wait it out, hoping the rail fairy shows up?

Buyers are getting picky, too—they want local, short-haul deliveries, and anything farther away means cutting into prices. Producers with storage or proximity to elevators have the upper hand, while those looking at long hauls might need to start making friends with their local processors

This year’s northern Alberta harvest is the ultimate mixed bag: delays, quality hiccups, and freight acting like it’s running its own reality show. Producers with flexibility or storage capacity might just win the game, while those with immediate movement needs will need to play their cards right to find local buyers and avoid a transportation headache. Either way, hang tight—after all, who needs predictability when you’ve got agriculture?

Because Farming Is Forever,
Leslie