Crop and cattle prices going strong
Prices in April were above their five-year averages
By Rob Roach, ATB Economics 8 June 2021 1 min read
Alberta is a major producer of canola, wheat and cattle, so it bodes well that the prices for these products have been on the rise.
According to the latest numbers* from Statistics Canada, the price of canola (Alberta’s largest crop by total dollar value) has increased 10 months in a row, reaching $646.56 per metric tonne in April—34% higher than the five-year average.
The story is similar for Alberta’s second largest crop, with wheat prices increasing every month since September 2020. At $282.46 per metric tonne, the price in April was 16% higher than the five-year average.
Things have been more uneven in the cattle sector. After pulling back three months in a row last fall and falling by 1% in March, cattle prices rose by 6% in April to land at $145.73 per hundredweight. April’s price was 6% higher than the five-year average.
Hog prices have been on a tear in recent months, rising by 60% since the start of the year to reach $113.72 per hundredweight in April (51% above the five-year average).
Prices were also above the five-year average for oats, barely, lentils, peas, chickens, milk and eggs.
The price improvement has been driven by tight global supplies and increased international demand. In keeping with this, the value of exports of agricultural products from Alberta was up sharply over the first three months of the year.
*Price data are extracted from administrative files and derived from Statistics Canada surveys.
Answer to the previous trivia question: According to the North American Industry Classification System, sawmills are part of the “manufacturing” sector rather than the “forestry” sector.
Today’s trivia question: Canola is a member of the Brassicaceae family of plants. Why is this plant family also known as crucifers (Cruciferae)?