Market updating October 25, 2022

P.E.I Grain Elevator Corporation (G.E.C) staff and the Board of Directors remains, healthy, functional and productive as we manage a surge in our crop production & delivery status encountered over this past year (2022). Accordingly, our decision to expand and improve efficiency and volume of operation has not been misguided!

We have exceeded purchases and deliveries to date from last year by over 15,000 metric tonnes this year. Exports and shipping/handling strategies have been executed to meet market opportunities and address our overall system functionality. Cereal yields and quality have been excellent. Corn yield and quality following Hurricane Fiona has been a difficult and costly issue for growers and livestock producers alike. Difficult harvest conditions being encountered by corn producers this year have never been encountered to such a degree in our region before. Fiona has also negatively but only marginally impacted Soybean yield but quality has been maintained. Congratulations to you all for overcoming these unanticipated challenges; the likes of which very few of us have ever encountered.

Feed wheat is still in strong demand as a P.E.I graded & export crop for our regional livestock & fishery sectors. Food wheat export opportunities to P & H milling in Halifax still exist despite a recovery / increase in national wheat production leading to greater import potential for the buyer. So congratulations to those who have excellent quality and fusarium free wheat.

Atlantic Grains Council has been involved in strategic planning discussions and it has become apparent that regional livestock production in the supply managed and related livestock & fisheries sectors leading to a higher level of local self sufficiency is not about to diminish Nutrient or, ingredient substitution related to price, sector supply and demand is a standard operating procedure for farmers and feed retailers alike.

If anything, sector expansion based on strong livestock selling prices and improved processing functionality despite recent higher feed costs is contemplated. So, for you all as P.E.I cereal crop growers, the opportunities to produce crops such as two row barley for swine and 6 row barley for other sectors has not diminished., Oats is an interesting crop in that it is well integrated with the potato sector as a rotational crop and there are Ontario food export opportunities, but it lacks sufficient energy for young and growing livestock. On the other hand it is an important source of fiber for ration inclusion, nutrient specificity or, horse feed, and should not be discounted depending on the production margin left over after expenses are allocated. Then there is the whole inclusion of cover crops and forage production related to sustainability to be considered as well. Soybean production as a protein feed meal and oil supplement continues and there strong regional demand for it too.

Out of province bio fuel market opportunities and global food sources have also tightened supplies and strengthened local prices.

And then there is corn. Corn has gained in production prevalence as silage, dry and high moisture sources of energy. The down side is high input pricing such as fertilizer and seed but modern varieties also have amazing yield potential in our region so long as reasonable and appropriate planting and harvest conditions are encountered. As such G.E.C is doing all we can to enable handling and marketing this variety of crops in a timely, efficient and, profitable manner. It is for this reason that we encourage you to reach out to General Manager Neil Campbell and site supervisors in your area to assess both pool and crop forward pricing opportunities for the coming year(s). As this will aid you as growers to make appropriate crop planting decisions and provide G.E.C with an overview as to what the upcoming harvest and crop delivery future might look like. Also, don’t miss out on the G.E.C crop advance and interest free payment program available if you qualify, to aid in addressing higher crop input costs and production pricing support. It is deducted from first deliveries to G.E.C in the coming year and secured by an appropriate contract.

So we at G.E.C wish you all good luck in making appropriate crop production planting and production choices for next year. G.E.C will once again appreciate the opportunity to purchase store and market your production or, offer a competitive purchase or selling price; if your business is leaning towards your own on farm storage, drying and, conditioning facilities assuming the economic parameters associated with such a business decision are in the cards. Lastly, we are also are proud to offer effective risk management programming to stabilize or enhance the final grower returns. We are optimistic that the 2022/23 business year will be both productive and profitable.