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Giving winter wheat a profit boost

Giving winter wheat a profit boost

AAFC is developing the crop as one of Canada’s new premium-quality commodities

By Kate Ayers
Staff Writer
Farms.com

Researchers are working to improve producers’ returns by developing winter wheat varieties that have qualities similar to those of premium-quality spring wheat.

The Canada Western Red Spring (CWRS) wheat class is the most popular type of the crop grown in Canada. It has stellar milling and baking qualities, which attracts a premium price in world markets, an Agriculture and Agri-Food Canada (AAFC) release said yesterday.  

However, winter wheat has many environmental benefits, including reducing wind and water-based soil erosion and smothering weeds. The crop also conserves energy as it requires fewer field operations.

Dr. Robert Graf, an AAFC research scientist, wants to advance the production benefits of the Canada Western Red Winter (CWRW) wheat class even further, the release said.

And the crop certainly has some strengths. For example, in Western Canada, winter wheat yields 25 per cent more grain than spring wheat. Winter wheat also has excellent milling qualities that produce high amounts of bright white and low ash flour.

While these qualities are desirable in the marketplace, the baking quality of winter wheat is not up to par with CWRS. As a result, winter wheat receives a lower market price than CWRS, the release said.  

So, Graf and his team aim to improve farmers’ returns by reducing the price gap between winter and spring wheat.

“The hope is that we’ll be able to have winter wheat, at some point in the future, that would have the same or similar quality profile as CWRS and would garner a much higher price in the marketplace,” Graf said to Farms.com today.

“With the higher yields and the better price, it will provide better return to farmers and would make winter wheat more attractive for them to grow.”

To do this, he wants to develop winter wheat varieties that have some of the features that bakers and millers desire in premium quality spring wheat.  

Graf and his team are working to increase winter wheat’s protein concentration, gluten strength and flour water absorption.

The team has its first prototype in registration trials, the release said. Graf projects that producers could cultivate a “CWRS-like” winter wheat variety within the next 10 years.

“Amongst the lines that we have been screening, we do see some lines that have a much-improved quality profile,” Graf said to Farms.com.

Graf hopes these improved varieties will encourage farmers to grow more winter wheat acreage.

The crop is “harvested three weeks earlier than spring wheat … so it provides greater flexibility for the farmer. It would be another tool in their toolbox that they may want to consider.” 

AAFC photo


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Agricultural Market Update: Grain Prices, Crop Conditions, and Weather Impacts

Welcome back to our channel where we provide comprehensive updates on the latest trends and changes in the agricultural sector. This week, we're looking at significant movements in grain prices, crop conditions, and the effects of weather patterns. Let's dive into the details:

Grain Price Decline Grain prices have fallen to their lowest levels since 2020, with December corn down 4.3% and November soybeans losing 3.1%. This decline is partly due to the beneficial moisture brought by Hurricane Beryl to the Midwest, which has improved crop conditions significantly. The USDA reported that corn and soybean crops are in their best condition in four years, contributing to the downward pressure on prices.

Record Short Positions and Market Sentiment Fund traders have increased their net short positions in the corn market to a record level, with a net short of 347,000 contracts of corn. This reflects a bearish sentiment in the market, further influencing grain price dynamics. Similar selling trends were observed in soybeans and SRW wheat, indicating broad market caution.

Weather Impact and Forecast Hurricane Beryl has brought significant rainfall across Arkansas, Missouri, western Tennessee, western Kentucky, and southern Illinois, with more expected over Missouri, Illinois, and Indiana in the coming days. Despite this, the market is currently more focused on the moisture benefits rather than potential heat risks forecasted in the 6-10 and 8-14 day periods.

US Crop Conditions Corn and soybean conditions have shown slight improvements last week, with corn rated 68% good to excellent and soybeans at 68%. These are among the best ratings for this time of year since 2020, suggesting robust crop health that could continue to influence grain prices.

Winter Wheat Harvest and Spring Wheat Conditions The US winter wheat harvest is progressing well, ahead of schedule with significant portions already harvested in Kansas and Texas. Spring wheat conditions are also favorable, with 75% rated good to excellent, although there have been some declines in states like Idaho, South Dakota, and Washington. Brazil's Corn Harvest and US Exports Brazil's second corn crop harvest is advancing rapidly due to favorable hot and dry conditions, with 63% of the crop already harvested. Meanwhile, US corn shipments saw a substantial increase last week, indicating strong export demand, which contrasts with the recent drop in domestic grain prices.

Ongoing Developments Lastly, the USDA reported a flash sale of corn, with significant quantities sold to unknown destinations, scheduled for delivery over the next two marketing years. This could signal ongoing international demand for US corn despite lower prices.

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