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Overview
The grass and legume markets have experienced quite a turn-around this past year. Following a spring of record shipping, low supplies and strong demand has increased prices for almost all grass and legume species. Spring seeding of forages has been very good, and now fall seeding of turf grass species, although not spectacular, is reported as also busy. Processors report shipping of orders is going well, but with many species “short”, prices have improved.
Table 1: Grass and Legume Seed Quotes
| | 6-Oct | 6-Jul | 6-Feb | 5-Sep | 5-Feb |
| Fescue, CR | 42 | 40 | 30 | 25-30 | 43-45 |
| Brome, Smooth | 75-85 | 65-75 | 45-55 | 50-60 | 50-65 |
| Brome, Carlton | 105-115 | 75 | 55-65 | 60-65 | 65-75 |
| Brome, Meadow | 85-100 | 55-65 | 30-35 | 25-35 | 25-35 |
| Timothy | 25 | 20-22 | 18-20 | 18-20 | 25-30 |
| Timothy, Climax | 40-45 | 40-45 | 40-50 | 30-32 | 35-50 |
| Alfalfa | 90-100 | 100-110 | 85-100 | 90-110 | 100-110 |
| Red Clover | 65-75 | 65-75 | 60-70 | 50-60 | 75-90 |
| Alsike Clover | 30 | 30-35 | 30-40 | 30-40 | 60-70 |
| Sweet Clover | 25-30 | 20-25 | 18-22 | 15-25 | 20-45 |
| ($/cwt CDN for common seed unless specified) |
| Note: all prices = paid to the grower after dockage |
Turf Seed Markets
The turf seed harvest started off in Missouri with their tall fescue (K-31) production coming in well below average again (2nd year in a row). A lack of winter precipitation resulted in the crop short 30 million lbs. (Missouri long term average @ 80 million).
A heat wave hit the northern end of Oregon’s Willamette Valley in mid-May which may have affected Oregon’s tall fescue and perennial ryegrass production for this year, with both crops’ production coming in average at best. However, with very little tall fescue carryover brought forward this year, tall fescue quotes are strong. Oregon’s annual ryegrass production recovered after last year’s poor crop, however, early indications are that usage is down.
In the Peace River region, the creeping red fescue crop came off better than expected. However, not much of a crop was expected to start out with! After a very dry winter, a dry spring, rains finally arrived in late May. An expected short crop came in two months later. Although dry conditions prevailed throughout the region, scattered showers gave some growers good yields.
Creeping Red fescue rejuvenation
However, overall yields were under 300 lbs/ac, and with reduced acres, a smaller crop came off. Following this past spring’s excellent shipping by local processors, warehouses are being refilled. Prices have risen to 42 cents/lb, despite the increase in our Canadian dollar (.89 range). However, Denmark’s creeping red fescue crop was above average, and they still have carryover from last year’s good crop. Some Danish seed (lower quality) is reportedly landing in Eastern North America. However, the North American price right now is not enough to get Denmark to export large amounts. Canadian creeper is still moving well this fall, with spring 07’ prices around 45 and fall 07’ prices @ 50¢ /lb.
One early concern arising, is the noticeable lack of clip crops/rejuvenated creeping red fescue crops in the region. And with the dry growing conditions this past year in many areas, newly seeded crops may also be lacking. Next spring should tell the story.
Forage Grass Seed Markets
Wow, where do you start!
Good forage seed movement this spring helped bite into supplies and overall, give stronger support for prices. The big move in prices occurred last spring with meadow bromegrass. Seed prices rose to the 60-65¢/lb range, following excellent spring usage and no clean seed available from processors (at least in the Peace region, who were too busy cleaning fescue to switch over to clean other crops). However, this demand has continued into the fall season, with meadow brome grass now being quoted in the 85 ¢ /lb to $1.00/lb range. There is little new crop, and old inventories are being dug into. Smooth brome grass has also seen demand increase, along with price. Quotes for common smooth brome grass are now in the 75 – 85 ¢/lb range, while timothy seed has moved up to the 25 ¢/lb mark. Lower quality export smooth brome grass seed sales has helped bring prices up. Certified meadow brome (Fleet) and smooth brome grass (Carlton) seed are fetching 25 to 40 ¢ /lb premiums. There was too much forage growth in Saskatchewan’s smooth brome crop, and few meadow brome acres.
The wheat grasses have also been caught up in this price rally. With a lot of seeding in the drier Northern States, along with the large US wild-fire situation this past summer, wheatgrass prices have risen across the board. Crested wheatgrass is being quoted anywhere’s from 85 ¢/lb to $1.00/lb, intermediate and slender wheatgrass @ $1.00/lb. Some certified varieties commanding 35-45 ¢ /lb premium.
Smoke from Arizona’s wildfires blocking the mid-day sun – summer 2006
Legume Seed Markets
Common alfalfa seed prices softened a little to 90 ¢/lb to $1.00/lb, despite harvest problems being encountered in east central, and north east Saskatchewan. Manitoba’s crop came in well above average, with very good yields. Saskatchewan’s crop is 60-70% off, with very wet fields left to combine. The Alberta crop, located in the Brooks area, came off in very good shape, and with excellent yields. It remains to be seen if the wet conditions in Saskatchewan will allow for the rest of the crop to be taken off this fall. Bee reproduction in both Manitoba and Alberta are reportedly above average.
Red clover prices remain strong, in the 65-75 ¢/lb range. Some harvesting remains in Saskatchewan. Some bug damage was observed in this year’s Canadian crop, with Lesser clover weevils and case borers the culprits.
With good alsike acres, and a good harvest, alsike clover prices have fallen to the 30 ¢/lb mark. Sweet clover prices have fallen to the more traditional 20-25 ¢/lb range.
Other News:
On the processor front, some major changes have occurred which may affect the Canadian industry. During the summer, one of the world’s largest grass seed companies, Scotts, bought out Turf Seeds (Hubbard Oregon), as well as Landmark Seed Co. (Spokane Wash.). Both Scotts and Turf Seeds have contract production throughout western Canada.
FarmPure Seeds out of Regina (formerly Quality Assured Seeds), has bought most of the assets of SW Newfield Seeds (formerly Newfield Seeds Co.). The forage seed division is based out of Nipawin Sask. FarmPure Seeds is a grower owned company.
Brett Young Seeds has dropped the Prairie Seeds label. Prairie Seeds, originally started by Dave Ingledew back in the 1980’s, was purchased by Brett Young seeds a few years back, and have now changed all titles to Brett-Young Seeds.
Hannas Seeds’ operation in Clairmont (Clairmont Seed Processing ltd.) has ceased their cleaning operations there. This wasn’t unexpected, as their elevator storage was lost last year, the plant was getting old and was being surrounded by residential development.
Summary
With production numbers getting finalized, and a lack of production of many grass seed crops this year, prices have moved up considerably. However, attitudes and demand can quickly change, and as a result, we are living in a potentially volatile marketplace right now. Growers with seed should contact buyers, let them know what you have and how much. If demand arises, the processors will get back to you with a price.
Hopefully, “the price will be right”.
David Wong
Alberta Agriculture, Food and Rural Development
Grande Prairie, AB
Ph: 780 538-5289
E-mail: david.k.wong@gov.ab.ca
October 20, 2006
Here is the link to pdf document |
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