High crop prices seen increasing Canadian acreage analysts

Canadian farmers are looking at the 2011 growing season as an opportunity to take advantage of historically high crop prices, and planted acreage should see an increase, according to trade estimates ahead of the Statistics Canada planting-intentions report on April 26. There is almost certainly going to be an increase in seeded acreage this spring, said Ron Frost of Frost Consulting in Calgary.

"The incentive is there for acreages to be maximised to what's available. When you combine the price incentive with the solid moisture conditions across the Canadian prairies, there will likely be one of our lower summer fallow numbers," Frost said. "That's assuming the weather cooperates throughout the month of May." Jerry Klassen, manager of GAP Grains in Winnipeg, agreed there would be more acres planted this year, and said canola would see a sizable increase from the 16.82 million acres planted in 2010. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine and International Milling Directory from Perendale Publishers

BPEX: Managing raw material costs

Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks. To help achieve this, BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices.

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times. This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options, an explanation of how these tools work, real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.