Wheat producers have seen an increase in demand from ethanol plants, thanks to more feed wheat in the commercial system.
Jake Davidson, executive manager of Winter Cereals Canada at Minnedosa, Man., said ethanol plants have been much more willing to take wheat this year.
“I’m seeing an increase in usage in Manitoba,” Davidson said. “Last year feed wheat prices were so high it didn’t really pay the ethanol people. The opportunity and the pricing are probably a little bit more to their liking.”
Davidson said the Husky ethanol plant in Minnedosa, Man. was taking more wheat this year than last as well, but their scales were still tilted toward corn.
One issue with winter wheat is been fairly high fusarium levels – and fusarium is concentrated in distillers grains, he said.
Husky plants at Minnedosa and at Lloydminster, Sask. were paying producers $4.25 and $4.55 per bushel respectively for feed wheat deliveries.
Meanwhile, elevator deliveries for feed wheat were bringing as much as $4.78 per bushel in Manitoba, $4.33 in Saskatchewan and $5.50 in Alberta, according to Prairie Ag Hotwire.