Developing Countries Will Lead Global Rice Import Growth in 2013-22, Says USDA Rice growers positive California MG prices are UP Russia MG Harvest coming to end Egypt open rice exports Vietnam’s rice export in tough competition with India Thai rice exports in May Rise Above Target This Year Viet-Nam Rice exports likely to fall this year
Australia Medium Grain Rice #1 $ N/A    Egypt 101 #2 $760    Egypt 178 #2 Rice $730    EU Prices Baldo €660    EU Prices LG-A Ariete 5% €550    EU Prices MG Lotto 5% €500    EU Prices RG Balilla 5% €500    Russia Rapan $ 700    USA Jupiter Paddy $375    USA Calrose #1 Paddy $480    USA Jupiter Rice $630    USA Calrose #1 $830   

 Main Page
 Home Page of This Title
 Medium Grain Rice Market
 Global Market News
 Grain News
 Pulses News
 Global Overview
 Importers Profile
 Exporters Profile
 What Is Rice
 History Of Rice
 Rice Harvest Seasons
 Rice Processing
 Rice Nutrition Facts
 Meals With Rice
 INCO Terms
 US Rice Standards
 EU Codex Standards
 Egyptian Specs
 Sponsor List
 All Links
 Commodity Exchange
Search in news database
Commodity prices expected to keep rising
SASKATOON -- The recent upturn in farm commodity prices could last at least a couple of years, says a Winnipeg-based agricultural markets consultant.

Greg Kostal was a guest speaker in a day-long seminar on markets organized by Merv Berscheid, owner of CGF Brokerage of Saskatoon, a company that specializes in brokering the sale of special crops.

The growing global interest in biofuels has been pushing commodity prices up for most crops, says Kostal.

"Anything associated with energy -- biofuels and ethanol -- is the leader and all the other commodities that can't directly participate ought to indirectly (benefit) as everything needs to maintain a competitive price to maintain acreage and supply growth growing," he said.

Kostal says farmers are used to seeing the disappointment of one-year blips in demand, followed by a slide in prices.

"My message is that it's a shift in demand and it's sustainable for a period of time, at least until supply has had a chance to keep up," he said.

Kostal says the current debate over whether the Canadian Wheat Board maintains its wheat and barley monopoly on export sales may be coming at a time when export markets fade away for Prairie grains. He says domestic markets, such as growing high-yield, high-starch wheat for ethanol, may be a better bet for farmers than growing traditional high-protein varieties for export.

"Exporting wheat off-shore is just not a long-term, sustainable component," he said. "For high wheat prices, you need supply adversity and we're just too far from port to make it work on a consistent basis."

Kostal says canola will be king on the Prairies in the coming year.

"Canola genetics in Canada are the best in the world and we will see more canola and more grains processed in the domestic market," he said.

Kostal says the push behind canola in the past few years has been to supply healthy oil with no trans fats component to the food-service industry, but the biofuel component will be increasingly a driver.

"This biofuel energy component is a much bigger beast."

Judy Dyck, executive director of the Saskatchewan Canola Growers Association and a member of the province's biodiesel development task force, says both biodiesel and healthy cooking oil will push up demand for canola.

"The industry has set a goal of producing 14 million metric tonnes by 2015," she said.

Dyck told producers at Berscheid's seminar that canola growers want a chance to own biofuel processing plants. However, the fear is the petroleum industry may not be interested in buying a processed biodiesel from farmer-owned companies to blend at their refineries.

Dyck says canola oil refined into biodiesel, removing the glycerin, demonstrates better lubricating properties than other biodiesel oils. However, she says petroleum refineries producing diesel could instead use raw vegetable oil from any source, including cheap overseas palm oil, to meet a legal biodiesel mandate of two per cent.

She says that would negate the canola lubrication advantage and shut farmers out of any real profits from biodiesel.

"The federal government wants to move ahead and put all these incentives in place. They have this idea that if you have specific incentives for biodiesel, that's OK," Dyck said. "But you can't set producers up with equity programs and all these other programs for a biodiesel plant and not give them (market) access."
MGR Archive 10.12.2006
Printer Friendly Version Of This Article
Send This Article To A Friend
User Name:
      Forgot your Password?
Region Type Price  
Russia Rapan $ 700
USA Jupiter Rice $630
USA Calrose #1 $830
USA Calrose #1 Paddy $480
EU Prices Baldo €660
Click for Details

Medium Grain Reports
Rice Market News
World Rice Markets and Trade
USDA Country Reports
Rice Market Monitor
Rice Outlook
Italian Paddy Supply
European Rice Weekly
EU Reports
Convert this amount:

  © 2002 All rights reserved. - Legal Notice