The Canadian Wheat Board has announced that 2009-10 initial payments for wheat will increase by between $5 and $44.65 per tonne, depending on grade, class and protein level, effective June 3, 2010.
Farmers who delivered grain between August 1, 2009 and June 2, 2010 will receive an adjustment payment. Payment will be issued to producers by direct deposit on June 15. Farmers who receive payment by cheque can expect to begin receiving their cheques in the mail after June 24.
Farmers who wish to defer payment have until June 9 to notify the CWB by calling 1-800-275-4292.
However, prospects for final returns in the current and new crop year were dampened when the CWB released its latest pool return outlooks (PROs) May 27. Most 2009-10 wheat values dropped by between $2 and $6 per tonne from the previous outlook levels in March. New-crop (2010-11) wheat values drop by between $1 and $6 per tonne from April levels.
“Global wheat demand has failed to keep pace with production and the end result has been a 60 per cent growth in ending stocks in three years,” the CWB wrote in its 2010-11 outlook.
Also, the CWB noted, “the general macroeconomic climate is characterized by a lack of confidence, unease and volatility. Greek financial issues have proven significant, revealing structural weaknesses across the European Union (EU) financial sector.”