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 assessed a Standard Operating Cost (SOC) for GEC services. In accordance with its statutory requirements and completion of the annual audit, GEC Directors settle the crop year pools with checks being mailed in December each year.
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. 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.