August 2, 2012 - The Western Producer

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THURSDAY, AUGUST 2, 2012

VOL. 90 | NO. 31 | $3.75

Crop breeder honoured

| P28 SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923

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WWW.PRODUCER.COM

COMMODITIES | PRICES

Canola prices ride drought to new heights

CWB | WHAT HAPPENS NOW?

CWB prepares for next chapter

BY ED WHITE WINNIPEG BUREAU

Canola growers owe a debt of gratitude to the U.S. drought for the great prices they’re getting. Without ongoing problems in the U.S. soybean crop, canola prices would probably be flat or falling. “Frankly, canola is just another oilseed consuming choice,” said analyst Greg Kostal about canola’s participation in the recent rally that has taken soybean prices to dizzying levels. He said canola lags soybeans as prices rise and fall. Canola prices have stayed above $600 per tonne for new crop futures since the U.S. drought began to diminish prospects for the American soybean crop. But canola’s price increases have come up well short of what soybeans have gained and that tells the tale of two very different crops. Canola and soybeans are both considered “vegetable oil” crops, but the real value in soybeans is its high protein meal, which is prized for animal feed.

‘Business as usual’ | CWB now operates as a voluntary marketing agency and competes for customers SASKATOON NEWSROOM

A revamped version of the CWB will enter the new crop year with a clean balance sheet, a streamlined workforce, a revised lineup of marketing contracts and a new corporate identity. But lingering legal issues surrounding the demise of the Canadian Wheat Board’s monopoly have yet to be resolved and likely won’t be for months, if not years. CWB chief executive officer Ian White said it will be business as usual as the voluntary marketing agency enters the new era of grain marketing in Western Canada this week.

As of Aug. 1, the CWB ceased to be the sole marketer of wheat, durum and malting barley produced in Western Canada. It must now operate as a voluntary marketing agency, competing with the private grain trade for farmers’ grain and oilseed crops. “Aug. 1 will come and go and basically we are considering ourselves as operating in the new environment (already),” White said last week. “We have a lot of confidence going forward. We’ve had a lot of indication from farmers that they are now and will be signing contracts with the CWB.” SEE CWB’S NEXT CHAPTER, PAGE 2

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SEE CANOLA PRICES, PAGE 2

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u|xhHEEJBy00001pzYv.:, AUGUST 2, 2012 Return undeliverable Canadian addresses to: Box 2500, Saskatoon, SK. S7K 2C4

Farmers began marketing grain through the Canadian Wheat Board in 1919, but the board was disbanded a year later. By 1929, international wheat markets had collapsed, and the board was resurrected permanently in 1935 to help stabilize prices. | FILE PHOTO

The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Corp. Publications Mail Agreement No. 40069240; Registration No. 10676

BY BRIAN CROSS


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