Still on the slide
Major crop prices retreat to 2021 levels
By Siddhartha Bhattacharya, ATB Economics 14 December 2023 1 min read
According to the latest data from Statistics Canada, wheat and canola prices received by Alberta farmers* fell to where they were two years back. Despite the downward trend, prices remain above historical levels (five and ten-year averages).
Stronger export volumes from Ukraine and a better-than-expected harvest in Turkey put downward pressure on October’s wheat prices for farmers across Canada. Averaging $365 per metric tonne, they were down by 11.7% from last year in Alberta and at the lowest level since October 2021.
It was a similar story for canola, the price of which has pulled back in eight months so far this year. The price remained 17.3% lower year-to-date relative to the first ten months of 2022 while reaching the lowest monthly level posted since the summer of 2021.
Barley prices received by Alberta farmers, on the other hand, ticked up slightly (+2%) from September, but were mostly unchanged from 2022 levels.
Slaughter cattle prices eased across every province in October, but remained significantly higher than last year’s levels. Meanwhile, feeder cattle prices jumped 22.3% in Alberta and posted the largest monthly increase nationally.
As mentioned in our latest economic outlook, moderating farm prices and below-average yields are expected to result in much slimmer farm incomes this year.
*Price data are extracted from administrative files and derived from Statistics Canada surveys.
Answer to the previous trivia question: A queen bee can lay up to 800,000 eggs during her lifetime.
Today’s trivia question: How many countries on the World Bank’s list of GDP in current dollars generate less annual economic output than the 10-year US$700 million contract Shohei Ohtani signed with the Los Angeles Dodgers?