Country 105

Country 105


Agriculture Report

Sow Inventory Drops

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Canadian inventory drops by 10 per cent.


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The Canadian sow inventory has dropped by around 10 per cent as a result of the federal Hog Farm Transition Program.

Results from the fourth and final tender for the program have been announced, as producers submitted bids indicating how much money they would require to exit the business.

The Canadian Pork Council says their main intent for the program was not to reduce herd size, but to give producers another option when talking to their lenders.

Producers have until April 15th to confirm their participation.

Overall, the 75 million dollar program has resulted in an estimated reduction of 137 thousand breeding animals.

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Agriculture Canada predicts farmers will plant a record-high number of canola acres this spring.

The department has raised its canola planting estimate by three per cent from its January report to 16.8 million acres.

Meanwhile, wheat acres are expected to drop by nearly 3 per cent to 23.1 million acres.

Barley acres are forecast to drop by three per cent to 4.4 million.

The department expects corn acres will rise by around 6 per cent and soybean area will increase by 4 per cent.

Flax acres are forecast to drop by at least 33 per cent due to market uncertainty.

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Farmers seem to be a little hesitant to sign new crop lentil production contracts.

Part of the reason is the eight- or nine-cent-a-pound difference between old and new crop prices.

The wild card is 2010 lentil acreage.

A huge crop could drive down prices this fall.

But some experts are fairly confident a record 3 million acres of lentils will be going into the ground this spring.

Lentils will be popular because expected returns for cereal crops are poor.

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The Canadian Wheat Board has created an online calculator that can be used to help farmers determine their current level of pricing risk.

The calculator is used in conjunction with the board's price pace, which is released in each pool return outlook.

The calculator is similar to the mortgage calculators found on many banking web sites.

It can be found on the board's website at www.cwb.ca

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The latest U-S Department of Agriculture supply and demand report has put additional pressure on the wheat market.

Darin Newsom of D-T-N Grains says wheat ending stocks came in at over 1 billion bushels.

World carryover estimates, meantime, were bumped up from 195.9 million tonnes to 196.8 million.

Newsom says the large stocks will provide a buffer, so prices may not rise even if 2010 production is affected by poor weather.

Overall, he says, the report was bearish for wheat, corn and soybeans.

 

 


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