FR
News

G3 Canada Limited announces first PROs for 2017-18 Annual Pools

Winnipeg – G3 Canada Limited released updated Pool Return Outlooks (PROs) for the 2017-18 Annual pools today.

G3 PRO (per tonne)
In store Vancouver or Thunder Bay
Annual Pool
Wheat 24-Aug
1 CWRS 14.5 289.00
1 CWRS 14.0 286.00
1 CWRS 13.5 283.00
1 CWRS 13.0 280.00
1 CWRS 12.5 275.00
1 CWRS 12.0 270.00
1 CWRS 11.5 265.00
2 CWRS 14.5 286.00
2 CWRS 14.0 283.00
2 CWRS 13.5 280.00
2 CWRS 13.0 277.00
2 CWRS 12.5 272.00
2 CWRS 12.0 267.00
2 CWRS 11.5 262.00
3 CWRS 13.0 266.00
3 CWRS 12.5 261.00
3 CWRS 12.0 256.00
3 CWRS 11.5 251.00

Durum
1 CWAD 13.0 332.00
1 CWAD 12.5 330.00
1 CWAD 11.5 325.00
1 CWAD 320.00
2 CWAD 13.0 322.00
2 CWAD 12.5 320.00
2 CWAD 11.5 315.00
2 CWAD 310.00
3 CWAD 13.0 306.00
3 CWAD 11.5 302.00
3 CWAD 300.00

Canola
1 Canada 517.00


Note: PROs are provided as price indications based on current nearby and forward markets. They are calculated basis track west coast or Thunder Bay ports, net of all projected operating costs, including G3's pool management fee. Volatile market conditions may affect the PROs significantly. PROs are not price guarantees and should not be confused with initial payments. Farmers should consider entering pool contracts as an excellent risk-management tool that provides a solid return from the entire pooling period.

To calculate pool returns backed off to the farm, farmers should factor in country deductions that they negotiate directly with grain handlers. These deductions may vary at different times of the year.

PRO commentary
2017-18 pools
PROs for the 2017-18 Annual Pools are based on current market information as the 2017 harvest is just getting underway across the Prairies. In terms of production, early forecasts predict Western Canadian spring wheat and durum will be at or above the five-year average of 22.36 and 5.89 million metric tonnes, respectively. Good subsoil moisture levels have been beneficial to the crops in Western Canada in spite of the hot and dry conditions over the summer. As for the U.S., drought conditions have driven production levels lower for both spring wheat and durum-which ultimately drove the Minneapolis futures markets higher during the months of June and July. However, given the better than expected Western Canadian crop, harvest pressure, and healthy world stocks, futures markets have come down substantially since then. Similarly, the Western Canadian canola crop has benefitted from good subsoil moisture conditions given drought-like conditions. Outlook for production looks positive as record acres were seeded this spring. Canola futures prices remain over $500 CAD per tonne.    

General pool assumptions:

  • Canadian dollar at 80 cents versus the U.S. dollar.
  • Current forward futures structure for wheat and canola.
August 24, 2017