Canada Markets

Producer deliveries of all principal field crops were seen at 1.5112 million metric tons (mmt) during the two weeks ending Dec. 31, or the combined weeks of 21 and 22. This volume was higher than the 1.3169 mmt delivered over the same period a year ago, when weather was a more challenging factor.

So far this crop year, or during the first 22 weeks of 2023-24, 26.2106 mmt of all principal field crops has been delivered, which is down 7.4% from the same period in 2022-23 and 2.8% below the five-year average for this period.

Of the select crops shown on the attached chart, deliveries of wheat, flax and peas are higher than the volume delivered in 2022-23, which is not shown on this chart. Of the crops shown, only deliveries of wheat (excluding durum) are higher than both 2022-23 and the five-year average, up 2% from last year and 16.8% higher than average.

Of the crops where the volumes delivered are seen trailing historical deliveries, deliveries of durum are down 31.5% from one year ago and 19% below the five-year average. A number of factors come into play here, including a smaller durum crop, a decline in export opportunities, a drop in price and sellers that are potentially reluctant to sell.

A similar situation is seen for canola, with deliveries down 14.4% from one year ago and 18.4% below the five-year average.

The attached chart compares the volumes delivered into licensed facilities over the first 22 weeks to the volume available for delivery. This is calculated by adding Statistics Canada's estimate for farm stocks as of July 31 to Statistics Canada's estimate for 2023 production.

As seen on the chart, the percentage of wheat, durum, oats, peas and lentils is higher than the five-year average for this period. This could point to the crops chosen by producers to be moved as compared to competing crops but could also signal that production estimates for these crops continue to lag the actual amount produced and bears watching.

Next, an update on Viterra facing possible job action. Last week in this blog, (https://www.dtnpf.com/…) we informed readers of a pending strike across Vitera's country system and head office for Saskatchewan employees covered by the Grain Services Union, which was slated for the afternoon of Jan. 5.

Late Jan. 5, various media outlets reported that the two Viterra Grain Services Union locals poised to go on strike that day have suspended strike action in order for members to vote on the latest offer. According to GSU on its website, Viterra had made a final offer dated Jan. 4 to the union.

"During their Jan. 5 meeting, elected officers from Local 1 and 2 concluded that there was enough difference between the company's January 4 Final Offer and the company's previous November 2023 Final Offer that members should have the opportunity to vote on this most recent offer."

Ratification votes are taking place during the next two weeks, and ballots will be counted on Jan. 19.

In the meantime, the union said "Union officials acknowledge the frustration among members and have decided that, during the period leading up to the ratification vote, employees will not be on legal strike but will engage in a "work to rule" approach. This means members will strictly adhere to work-related rules and procedures without undertaking any additional work beyond their contractual and legal obligations."

In Viterra's Jan. 5 news release, the Viterra Canada's VP of Human Resources Jordan Jakubowski, said "We believe that we have provided an offer that is fair and reasonable, one that takes into account the needs of our employees, while balancing the needs of our business through long-term labour stability."

The company's latest offer included a four-year agreement, with overall salary increases of 4.5% in year one, 3.75% in year two, and 2.5% in years three and four. Employees would continue to be eligible for an annual bonus payment under the company's Short-Term Incentive Plan.

"In the meantime, the company will closely monitor the union's actions leading up to vote, and will strongly consider implementing a lockout should the union take any action that disrupts the company's business activities between now and then," Viterra added in its news release.

Cliff Jamieson can be reached at cliff.jamieson@dtn.com.

Follow him on X, formerly known as Twitter, @CliffJamieson.

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