Crop prices grew again in June
The price of wheat in Alberta has gone up every month for almost two years
By Rob Roach, ATB Economics 9 August 2022 1 min read
Wheat, canola and barely—Alberta’s three largest crops—continued to fetch record prices* in June.
Although smaller than the 7.8% increase in May, a tonne of Alberta wheat (excluding durum) was selling for $520.69 in June (+1.0%). This was the 22nd month in a row the price increased.
After edging down 0.4% in May, the price of a tonne of Alberta canola jumped 3.3% in June to hit a record high of $1,077.97.
Barley posted its 9th consecutive monthly increase, rising to $411.07 per tonne (+1.3%).
Averaged over the first half of the year, wheat prices were up 65.6% compared to the same period in 2021, canola prices were 58.2% higher and barley prices were 46.5% higher.
The key factors driving up the prices are recent droughts and the disruptive effects of the Russian invasion of Ukraine on the global food supply.
If more shipments of grain make it out of Ukraine (the first shipment of grain since the invasion began left Odessa on August 1) and better growing conditions boost crop production, we should see prices moderate over the second half of the year.
*Prices are collected at point of first transaction, where fees deducted before a producer is paid are excluded (for example, storage, transportation and administration costs), but any bonuses and premiums that can be attributed to specific commodities are included. Commodity-specific program payments are not included in the price.
Answer to the previous trivia question: Believe it or not, but yesterday was National Sneak Some Zucchini Onto Your Neighbour’s Porch Day!
Today’s trivia question: Approximately how many kilometres is Edmonton from Odessa?