Grass and Legume Seed Market Update - August 4, 2009

Swathing of the Peace country’s 2009 creeping red fescue crop has started, with a few field combined. So far, with so few fields harvested, no one wants to comment on how the yields are, but it appears to be a normal crop. But the region is large, and fields will vary in production this year.

With the new harvest starting, a very quiet whole sale year for grass and legume seed processors ends. And with this new crop year starting, processors are bracing themselves for another very slow year. Inventory levels remain high in most warehouses, on both sides of the border. With slow movement in the grass and legume seed pipeline, firm quotes remain few. And to add to our seed movement woes, our Canadian dollars “impressive” movement upwards against the US dollar is very depressing news, as much of our product is exported into the USA, and this movement only makes our seed more expensive for our US buyers.

Creeping red fescue quotes are in the 42 to 45 ¢/lb range for new crop. However, with the slow markets, some processors have contracts to fulfill and others have inventory on hand, so fall buying may be limited. However, the processors have to keep their cleaners running, so some buying will take place, especially in light of the lower acres this year. In other words, lower overall production means less seed to go around.

On the forage grass seed quotes end of things, prices have been pressured due to a lack of demand. Last quotes for smooth brome grass quotes were in the 40 to 50 ¢/lb range for common seed, with Certified Carlton 5 to 10 ¢/lb higher. Meadow brome grass seed quotes are now in the $1.30-$1.50/lb range. Common timothy seed quotes were in the 40-45 ¢/lb range. Certified Climax timothy is quoted at a 10 to 15 ¢/lb premium. With a lack of new buying, many processors may wait for better new crop production figures to come in before giving a quote.

On the legume side of thing, common alfalfa seed prices are in the $1.00 to $1.20/lb range. Variety not stated alfalfa seed can be 20 to 30 ¢/lb higher, depending on the variety initially grown. With cool weather conditions in the eastern prairies, the Manitoba and Saskatchewan alfalfa seed crop is late. Seed set and harvest may be up to 2-3 weeks behind. Alsike clover quotes were in the 35-45 ¢/lb range, while Red clover quotes were anywhere’s from 80 ¢ to a $1.00 /lb. Sweet clover quotes were similar to alsike quotes, at 35 to 40 ¢/lb.

With very few new orders, and good seed inventories in both the US and Canada, the markets remain very quiet. These market signals are telling growers to be prepared to store. Until processors start moving inventory again, growers may have no other choice but to store. With harvest starting, growers should remember that “good quality seed” always sells, so continue to grow and harvest good quality seed. It may not move now, but there will always a market for this seed.

	Creeping Red Fescue	Boreal C R Fescue	Smooth Brome Grass	Carlton Smooth Brome Grass	Meadow Brome Grass	Fleet Meadow Brome Grass	Timothy	Climax Timothy	Alfalfa	Red Clover	Alsike Clover	Sweet Clover
	Common #1 - Min 97% Pure, 85% Germ	Cert #1	Common #1	Cert #1	Common #1	Cert #1	Common #1	Cert #1	Common #1	Common #1	Common #1	Common #1
Feb 5-08	50	60	130-140	140-150	160-170	190	35+	55-60	120-130	85-100	35	25-30
Mar 11	52-55	60	130-140	140-150	160-170	190	35-40	55-60	120-130	85-100	35-37	25-30
Apr 1	55	60-70	130-140	140-150	160-170	190	35-40	55-60	120-130	85-100	35-37	25-30
May 6	60	65-75	120-135	140-150	160-170	170-190	45-50	55-65	115-130	85-100	23-40	25-30
June 3	62-65	70-75	120-130	130-145	160-170	170-190	50	60-65	100-120	85-100	35-45	30
July 8	62-65	65-70	100-120	110-120	150-160	170-190	50	60-65	100-125	85-100	35-45	30
Aug 5	65-68	80-90	85-110	110-120	150-160	170-190	50	65-70	100-125	85-100	35-45	30
Sept 2	65-68	80-85	55-65	65-70	150-170	170 -190	50-55	65-75	100-125	90-110	45-50	45-55
Sept 29	65	80	55-60	65-70	165-170	170-190	50	65-70	120-140	100-110	50-60	40-50
Nov 4	62-65	75-80	55-60	65-70	165-170	170-190	45-50	65-70	120-130	100-115	45-50	40-50
Dec 2	60-62	70-75	55-60	65-70	160-170	170-190	45-50	55-70	120-140	100-115	45-50	40-50
Jan 5-09	60-62	65-75	45-60	60-70	160-170	170-190	40-50	50-65	120-150	110-125	40-50	35-50
Feb 3	55-60	65-75	45-60	60-70	160-165	170-190	40-45	50-65	120-150	115-125	40-50	35-50
Mar 3	50-60	60-70	45-55	55-65	155-165	170-180	40-50	55-60	120-140	105-115	40-50	35-50
Mar 31	45-50	50-60	45-50	55-65	155-165	170-180	40-45	45-55	120-130	80-110	35-40	35-40
May 4	40-45	50-55	45-50	55-60	150-160	160-170	40	45-55	100-125	80-100	35-40	35-40
June 2	40-45	50-55	40-50	50-60	150-160	160-170	40	45-55	100-125	80-100	35-40	35-40
July 7	40-45	50-55	40-50	50-60	150-160	160-170	40	45-55	100-125	80-100	35-40	35-40
Aug 4	42-45	50-55	40-50	50-60	130-140	140-160	35-40	45-55	100-130	80-100	35-45	35-40

Grass and legumes seed price quotes (cents/lb)

Prepared by David Wong, Alberta Agriculture and Rural Development, Ag-Info Centre