Prices for most crop commodities continued to decline in February

OTTAWA — Monthly provincial prices received by farmers in February for grains, oilseeds, specialty crops, cattle, hogs, poultry, eggs and dairy products were recently released by Statistics Canada.

Prices for most crop commodities continued to decline in February, mainly because of pressure from strong global supplies and international competition.

In February, prices for wheat (excluding durum) fell for the seventh consecutive month in all Prairie provinces compared with January. Saskatchewan (-3.1%) posted the largest decline, followed by Alberta (-2.5%) and Manitoba (-2.5%). International competition from Russia, as well as Ukraine’s continued ability to maintain export flows, put downward pressure on wheat prices.

Soybean prices declined month over month in most provinces in February. Manitoba (-9.0%) recorded the largest decrease, followed by Ontario (-5.0%) and Quebec (-4.4%). This was the fifth consecutive month-over-month price decline in Manitoba and the third in Quebec. On a year-over-year basis, soybean prices fell across Canada in February, led by Manitoba (-25.3%), followed by Ontario (-21.2%) and Quebec (-19.3%). Higher domestic soybean production in 2023 and expected higher supplies from South America in 2024 continued to have a notable impact on prices.

In February, monthly canola prices fell across Canada. Quebec (-10.1%) posted the largest decline, followed by Saskatchewan (-8.1%). Monthly canola prices fell for the sixth consecutive month in Manitoba (-7.4%) and for the fourth in Ontario (-1.7%). Strong global supplies of canola and competition from other oilseeds put downward pressure on prices.

Compared with January, prices for dry peas increased in the Prairie provinces in February. Saskatchewan (+6.3%) posted the largest increase, followed by Alberta (+5.5%) and Manitoba (+4.1%). This was the sixth consecutive month-over-month price increase in Saskatchewan and Alberta and the third in Manitoba. In February, India announced its decision to extend the suspension of pea tariffs by six to eight weeks beyond March 31 and, as a result, the increased demand exerted upward pressure on prices.

Slaughter cattle prices increased across all provinces in February compared with January. The price increases ranged from 1.0% in Manitoba to 13.7% in Quebec. February prices were at least 17.7% higher year over year in all provinces. The smaller cattle herd supported slaughter cattle prices.

Feeder cattle prices also rose across all provinces in February compared with January, with gains ranging from 5.1% in Manitoba to 28.9% in New Brunswick. February marked three consecutive months of increasing prices for Alberta, as drought conditions and elevated feed costs continued to impact the cattle sector. Furthermore, all provinces reported year-over-year price rises of at least 17.3% in February.

Slaughter hog prices were up across all provinces in February compared with the previous month. This marked the end of five months of decreasing prices for Nova Scotia, New Brunswick, Saskatchewan, Alberta and British Columbia. The month-over-month price increases ranged from 3.3% in Prince Edward Island to 12.5% in Alberta.