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Pooling

Pooling and the Open Market

Grain & Oilseed producers have the option of marketing grain through one of several grain pooling arrangements.  Grain and oilseed products placed within the pools are hedged, thus price risks are managed. Through such a scheme, participants receive an average of all prices received throughout the marketing year plus any hedging income and are are assessed a Standard Operating Cost (SOC) for GEC services. In accordance with its statutory requirements and completion of the annual audit, GEC Directors settled the 2014/15 crop year pools; cheques were in the mail early December 2015. For 2015, the SOC was based on an $18.00 charge per mt.

Pool performance results are published in the Annual Report to the Legislature, available through Island Information Service, Charlottetown, the GEC administrative office, Kensington P.E.I. or the P.E.I. Department of Agriculture & Fisheries 5th Floor Jones Building, Information section.

Grain Growers also have the opportunity to sell their grain on the open market with prices established daily and the amount to be sold in this manner set by GEC. Whenever possible, GEC will offer contracts where export grade specifications can be met. Forward contracts may soon be expected for crops such as malting barley, distillers rye, or in exceptional circumstances, milling wheat whenever DON levels and quality parameters can be met or exceeded.

While GEC soybean pooling arrangements remain, growth in soybean production has been associated with greater demand for locked in forward contract prices.  GEC has responded to this through its offering of  forward pricing contracts, available as a result of the business relationships developed with a number of national grain companies, local brokerage firms or processing plants in the Atlantic Provinces, Quebec or Europe. More competition means potential for an improved basis to the grower. Forward contract prices for soybeans remained attractive to growers. Bookings for 2016 new crop soybean contracts have commenced. The reader is encouraged to contact Neil Campbell, General Manager, at 902-836-8942 for a competitive price quote.

On the other hand, there remains the opportunity to market all or part of the crop through the traditional soybean pooling arrangement. In times of unsettled prices, pooling can remain a viable and attractive option.

This past year (2015), even though corn is not currently a major line of business for the Corporation as it competes with soybeans for space at harvest, GEC implemented a remote site lease arrangement as a service to growers to handle and dry approximately 2,000 mt of corn which was placed in a GEC sponsored corn pool as the marketing mechanism of choice.

Grain Elevators

  • Kensington
    902-836-8927
    Wade Waddell
    Plant Supervisor

     

  • Roseneath
    902-838-0891
    Joseph  Vandenberghe
    Plant Supervisor

  • Elmsdale
    902-853-8630
    Donald Stewart
    Plant Supervisor

  • Head Office
    902-836-8935

    Neil Campbell
    General Manager

    Michael Delaney
    Director Strategic Planning

    Joann Lowther  Financial Manager

    Barbara Walker Accounting Tech

    Derrith MacDougall Admin Support Worker