| | Tell me about the grain prices the AGC provides?
The Alberta Grain Commission (AGC) is a source of daily grain price information. The AGC provides closing street prices and ICE Futures Canada (formerly Winnipeg Commodity Exchange) settled futures qotations by 1:00 p.m. daily. These prices can again be obtained through the recording system and through the internet . The street prices are provided for five locations in Alberta: Lethbridge, Calgary, Red Deer, Edmonton, and Grande Prairie. Prices are provided for the following crops: canola, flax, wheat, oats, rye, feed peas, and barley. The prices also include the Lethbridge cash barley price, the Vancouver cash canola price and daily price quotes from the canola crushers. These recordings are available by dialing 780-422-3591.
Prices are calculated from information provided by eight grain companies. The AGC calculates an average from the prices and reports it as the street price in a particular area.
The AGC also provides, on a weekly basis, a summary of feed grain prices. These prices are reported for seven locations in the province: Lethbridge, Calgary, Medicine Hat, Red Deer, Vermilion, Edmonton, and Grande Prairie. This price information is collected through a weekly survey of feedmills. This information is also available through the recording system 780-422-3591 and the internet.
Why are there three different barley prices for Lethbridge?
Different prices reflect different markets. Those markets may differ because of slightly different qualities, services or pricing points. For example, in the case of Lethbridge, the AGC publishes three barley prices:
- Lethbridge cash - published daily
- Lethbridge country elevator - published daily
- Lethbridge feed grain - published weekly
The Lethbridge cash barley price is gathered daily by ICE Futures Canada (ICE). Each morning ICE phones three cash brokers for the price at which barley is trading in the Lethbridge area. ICE then calculates an average from the three values and uses that as it's daily "Lethbridge cash" price. The Lethbridge cash barley price reflects the actual trading price for 48 pound barley, usually in volumes of 100 tonnes or more.
The feed grain price series is gathered each Monday morning by the AGC from feedmills and feedlots. Thus the "feed grain" price series is based on what buyers are bidding (the price they are willing to pay) for barley delivered to them. The AGC publishes this price series as a range of prices, not an average.
The Lethbridge country elevator price is the average price paid for delivery of barley into an elevator in the proximity of Lethbridge. The prices are obtained through a weekly survey by the AGC, then adjusted twice a day (opening and closing) to reflect the changing futures market. Only the average price is reported. These prices are usually lower than the "Lethbridge cash", or the "feed grain" price series, as they reflect elevation costs or local pick-up costs, and are an average.
So why publish all of them? The main reason is to have regional price information around the province. The "Lethbridge cash" only applies to Lethbridge. Whereas, the "feed grain" and "country elevator" series is available for at least four other locations, and for other grains.
What price series should you use? For feed barley, if you know your freight and handling costs to Lethbridge, you likely only need to monitor the Lethbridge cash, and then adjust for your location. That will give you an estimated feed barley value for your area. Then look at the recent "feed grain" prices for your area (as these are based on actual bids from buyers), and see how your calculated value compares to that price range. Then you have a some information for negotiating with feed users.
Do You Have Other Questions?
Contact: Brenda Brindle 780-427-3077 or Julie Toma 780-427-3080 |
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