For example, basis in some regions is around $3 per bushel, pushing delivered prices close to $7 per bushel, though end-user offers remain conservative.
Forward marketing, Fedorchuk emphasized, is crucial, particularly in years with uncertain yields. Selling grain incrementally rather than committing the entire crop allows farmers to manage risk and capitalize on favourable market conditions.
Fedorchuk advised monitoring both futures and basis trends closely, noting that market fluctuations can be influenced by USDA reports, crop tours, and international trade developments.
Environmental factors are also impacting supply and demand. Southwestern Ontario experienced a challenging growing season, Fedorchuk noted that southern Quebec’s corn crop is also reported as below average.
These regional differences may increase local demand as grain is moved to feed industries, particularly in areas experiencing tighter supplies.
Fedorchuk also touched on global trade issues, including China’s canola tariffs, which affect the movement of Canadian crops and influence market dynamics. Meanwhile, South American soybeans continue to enter global markets, affecting pricing and competition for Canadian growers.
Fedorchuk stressed the importance of working with grain buyers and co-op representatives to manage logistics, storage, and marketing strategies effectively.
Observing market trends, understanding regional and global influences, and planning incremental sales can help Ontario farmers navigate price volatility while protecting yields and revenue.
Overall, Fedorchuk encouraged farmers to remain informed, monitor basis and futures, and make proactive marketing decisions. By combining careful planning with incremental selling strategies, growers can better manage risk, optimize returns, and adapt to shifting market conditions both locally and globally.
Watch the video of Fedorchuk’s Great Ontario Yield Tour presentation below.