Contracts and Pricing – Comparing Nominal U.S. and Canadian Prices for Canadian Grain

How do sellers of grain of Canadian origin into the U.S. compare nominal U.S. and Canadian prices?

U.S. prices are generally listed in U.S. dollars per bushel. A bushel is an “avoirdupois or
imperial ” (U.S. / British) and U.S. customary unit of dry volume. Bushels of grain most
often will be determined by dividing the shipment net weight in pounds by the U.S.
Commercial Bushel Size for the grain in the shipment.For example one bushel of wheat is equal to 60 pounds. One bushel of barley is equal to 48 pounds.

For wheat, the standard conversion is 36.74 bushels per metric ton (tonnes) and there are  2,204.6 pounds in a metric ton.

Conversion tables and calculators for pounds to tonnes are available at www.google.com.
More information is available at the USDA website at:
http://www.gipsa.usda.gov/publications/fgis/handbooks/graininsp/grbook2/general_info.pdf

Grain prices in Canada are quoted in Canadian dollars per tonne. Canadian / U.S. foreign
exchange quotes are available at your financial institution or various financial websites.

For any U.S. delivery a phone call in advance to the intended delivery point is advisable prior
to making physical delivery. Sellers of grain wishing to deliver to a U.S. grain facility are
advised to contact the company prior to delivery to obtain the information necessary to
conclude a commercial transaction.

More information on U.S. Commercial Bushel Sizes and Tables for Weights and Measurement
of Crops can be found on the web. For example the University Missouri’s Agricultural
Publication G4020, found on the web at:
http://extension.missouri.edu/publications/DisplayPub.aspx?P=G4020.

Some U.S. grain companies may contract for grain and provide prices in tonnes and / or
Canadian dollars. Again it is very important to contact your intended or potential grain
buyer or storage facility to provide for a complete understanding of all terms related to your
delivery of grain to a facility in the U.S.

 

Contact Us

Have a question you'd like answered or comment about the site? Click here to contact us.

Offline FAQ

To download a PDF file of the full FAQs, please click here. (Adobe Acrobat required)