Agronomy Insight 03/07/13 8:39:34 PM
***Any Agronomy Questions can be forwarded to Kirsten Leigh at firstname.lastname@example.org
SY985 CPS Wheat
Syngenta Canada Inc. launched its newest wheat variety, Canadian Prairie Spring Red (CPSR) SY985, for the 2013 growing season.
It emerges fast and strong out of the ground with exceptional uniformity. SY985 features short straw, excellent standability and good lodging resistance, as well as very good resistance to leaf, stem and stripe rusts, loose smut and bunt.
SY985 offers a unique combination of qualities for CPSR varieties – high yield potential and milling quality grain. With its level of protein and milling quality, SY985 meets the needs of the largest traded milling wheat type in the world, creating a new market for western Canadian growers.
In this example we are using the
December 2013 future prices to show the advantage of growing CPS compared to CWRS:
CPS (2 CPS 11.0 protein)
@ 58 bu/ac x $6.90/bu = $400.20/ac
CWRS (1 CWRS 13.5 protein)
@ 50 bu/ac x $7.48/bu = $374.00/ac
Potential $26.20/ac advantage
In the example we are using the
December 2013 Feed Wheat price:
CPS @ 58 bu/ac x $6.35/bu = $368.30/ac
CWRS @ 50 bu/ac X $6.35/bu = $317.50/ac
Potential $50.80/ac advantage
With an open market system it does not make sense to sell CWRS into a market that is not willing to pay for it. This year the farmer received price signals to grow more utility wheat like CPSR, to market into more competitive world market.
CWRS is premium wheat; Canada has customers that will pay a premium for about half of our available exports. That leaves the other half of our available exports to compete with the rest of the world that has a lesser quality than CWRS and is willing to sell it cheaper.
Why sell a Cadillac when they are only willing to pay for a Malibu? So why should we grow too much of a higher quality wheat just to sell it into a discounted market when we have the type of wheat, like CPSR, that the market wants and CPSR will return just as well or better than CWRS with higher yields.
It is about being competitively priced and keeping our growers profitable.
• Yields 15 to 20% higher than CWRS
• The main end uses for CPS wheat include noodles, flat breads, and crackers. Is also a starch source for ethanol production as well as livestock feed.
• Global demand for CPS Wheat is growing
• From the Marketing Corner we see that a small yield advantage will reward the grower with a significant potential profit.
SY985 Cps reference from http://syngentafarm.ca/prodrender/index.aspx?ProdID=1241&ProdNM=SY985
Thank you to Mark Nicholson and Kendell Malenchak for the merchandizing notes