(Resource News International) — Canaryseed prices in Western Canada continue to be stuck in a sideways pattern, as steady demand seems to be matching supply coming in.
“There is always some small amount of demand surfacing from a variety of outlets, but supplies on hand have been able to accommodate that interest,” said Earl Schnellert, a grain merchandiser with Agri-Tel Grain at Beausejour, Man.
“Companies, essentially, have not had to raise bids in order to cover the demand that has been coming forward,” he said.
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Schnellert indicated producers are also content to sit on the supply they have, waiting for better values. “As a result, there is also a bit of a standoff going on,” he said.
Producers are not expecting to get 30 cents a pound for their canary seed, he said, but are still holding out for 22-25 cents a pound. Some may be happy with 20 cents a pound.
As for whether values are attractive enough to encourage producers to seed the crop in the spring of 2010, Schnellert said there were growers who will undoubtedly keep canaryseed in their rotation.
He also speculated that as long as producers can get at least 20 cents a pound for the canaryseed, then seeded area should at least hold steady.
“In comparison to durum, for example, canaryseed at present certainly looks a whole pile better from a financial standpoint,” he said.
Prices for canaryseed delivered to the elevator, based on Prairie Ag Hotwire data, have been holding in the 17.5-19 cents per pound area. At the beginning of January those values were also in the 17.5-19 cents per pound area.
