Grain Farmers of Ontario Announces Initial Prices and Pool Return Outlook for Wheat in Pool

Press release, press releases, news release, news releases

GUELPH, ON (June 21, 2018) – Grain Farmers of Ontario, the province’s largest commodity organization, representing Ontario’s 28,000 barley, corn, oat, soybean and wheat farmers, today announces the initial payments and pool return outlook (PRO) for the six wheat pools managed by the Wheat Marketing department.

The initial prices act as an advanced payment on the PRO, estimated at 60 per cent of total value. The PRO estimation is based on current market conditions and how various classes of wheat should expect to perform in the marketplace. The number will change as the year progresses, but announcing an initial figure allows wheat farmers to understand the starting point for the year as they decide whether or not to take advantage of the Grain Farmers of Ontario wheat pool.

“The Pool allows growers to diversify their risk, while working with a pool that is dedicated to watching and monitoring the markets, and any proceeds, less expenses, go back to the pool participants. Farmers can move grain at harvest while taking advantage of post-harvest markets to spread out cash flow,” says Todd Austin, Manager of Wheat Marketing, Grain Farmers of Ontario. “The Pool historically hits market average or better, so it is a good insurance policy when combined with other marketing strategies.”

Grain Farmers of Ontario’s initial payments for the 2018 wheat marketing year are:

Wheat Class Initial Prices ($/tonne)
SWW (Pool A) $145
HRW (Pool B) $145
HRS (Pool C) $165
SRW (Pool E) $135
CER (Pool F) $135
Feed (Pool G) $115

Grain Farmers of Ontario offers pre-pool and post-pool contracts. Pre-pool contracts offer an advance above the initial price to bring the value closer to 70 per cent to the current cash price. Pre-pool contracts have to be established with Grain Farmers of Ontario prior to delivery. Post-pool contracts allow for delivery into the pool after September and into the spring. Post pool contracts have to be established by September 28.

For more information or for updates on the PRO for all wheat classes visit www.gfo.ca/wheatmarketing, or call 1-800-265-0550.

Contact

Todd Austin, Manager, Marketing – 519 767-4118; taustin@gfo.ca

Maegan MacKimmie, Communications Coordinator – 226 979-5591; mmackimmie@gfo.ca

Grain Farmers of Ontario is the province’s largest commodity organization, representing Ontario’s 28,000 barley, corn, oat, soybean and wheat farmers. The crops they grow cover 6 million acres of farm land across the province, generate over $2.5 billion in farm gate receipts, result in over $9 billion in economic output and are responsible for over 40,000 jobs in the province.