Protein premiums for wheat

wheat protein premiums this crop year have dropped back to below average

The 2018 crop year featured a strong protein premium for wheat, in particular hard red spring wheat. Neil Blue, provincial crop market analyst with Alberta Agriculture and Forestry, looks at the situation with protein premiums on wheat in 2019.

Blue says that wheat protein premiums this crop year have dropped back to below average levels due to increased supply of higher protein wheat in the world. These crops include the dryness-reduced U.S. hard red winter wheat crop as well as European and post-Soviet state crops.

“In Alberta, this year’s protein premium is around two cents per bushel per one-tenth per cent of protein,” says Blue. “Although, the protein premium may vary from one buyer to another.”

“Some buyers may quote that protein premium as 10 cents per bushel for a half percentage point of protein. Last spring, the protein premiums for wheat were historically high, averaging about five cents per bushel per one-tenth per cent protein point.”

He adds that for an individual buyer, the protein premium may differ at different protein levels. “For example, last year for some half-point protein increments, the premium was as high as eight cents per bushel per one-tenth point of protein. Over the last several years in Alberta, the average protein premium for wheat has been from 3.5 to 4 cents per bushel per one-tenth per cent protein level.”

As for some marketing strategies, Blues says that taking representative samples as grain is placed into storage and using the Canadian Grain Commission’s (CGC) Harvest Sample Program are a good start.

“There is no charge for the program during the harvest sample submission period, and the CGC provides for wheat the grade, protein and DON levels as well as the falling number,” he explains. “Although considered unofficial, that CGC grading information can then be used as a reference by producers in their marketing.”

The next step is shopping around widely to learn how buyers are grading your wheat and also learn the grade, protein and other grade aspect price differentials that each buyer is applying.

“On that note,” says Blue, “I realize that producers have encountered variations from buyer to buyer in grading, but I advise that producers should try to collect as much information about buyers’ prices as possible on which to base their sale decisions.”

Blue adds that producers who disagree with an assessed grade on delivery to a licensed primary elevator can request that a sample from that load be sent to the CGC for a grade assessment. “That grade will be the final grade for settlement. I know that producers are reluctant to challenge a grade factor, but that is a right of producers and the method that should be acceptable to buyers to maintain good relationships with producers.”

For more information about wheat protein premiums, contact Neil Blue at neil.blue@gov.ab.ca or 780-422-4053.

-From Alberta Agri-news

Just Posted

Magnetos Car Club ready to shine at annual car show and cruise

For the 19th year in a row, featured cars will line Main Street on June 8th

Music in the Park kicks off in June

In just a few short weeks, great tunes will be heard in West Stettler Park

Ellis Bird Farm opens 2019 with book unveil of Charlie, Winnie and the Bluebirds

Site Manager Myrna Pearman documented the history of central Alberta’s natural treasure

Popular downtown initiative bolsters Stettler Food Bank donations

Wells Furniture and Brenda’s Cozy Cafe are gearing up for the third annual Food Bank Drive May 29th, 30th and 31st

‘Stop Order’ issued to Paradise Shores

According to the County, staff will continue to communicate and work with the developer

Killer of Calgary mother, daughter gets no parole for 50 years

A jury found Edward Downey guilty last year in the deaths of Sara Baillie, 34, and five-year-old Taliyah Marsman

Body of missing snowmobiler recovered from Great Slave Lake

Police confirm the body is that of one of three missing snowmobilers

Is vegan food a human right? Ontario firefighter battling B.C. blaze argues it is

Adam Knauff says he had to go hungry some days because there was no vegan food

Winds helping in battle against fire threatening northern Alberta town

Nearly 5,000 people have cleared out of High Level and nearby First Nation

Federal government funds millions to help B.C. police spot drugged driving

Many police departments have expressed wariness about using the only government-approved roadside test

Judge: Mississippi 6-week abortion ban ‘smacks of defiance’

The new law would prohibit most abortions once a fetal heartbeat can be detected

Justin Trudeau credits immigration for Canada’s growing tech sector

Trudeau stressed that Canada has become a major source of talent for tech all over the world

Feds launch tourism strategy designed to boost sector 25 per cent by 2025

The fund is supposed to back experiences that show off Canada’s strengths

Growing wildfire prompts evacuation of High Level, Alta.

Chuckegg Creek fire has been burning for several days, but grew substantially Sunday

Most Read