In theory, price transparency is required for a free market to be efficient. In reality, farmers like to know they’re getting a fair value for their grain.
A lack of transparency was seen by some producers as one of the reasons why the Canadian Wheat Board’s monopoly needed to be dismantled. That wish was granted in 2012. And now almost three years later, there are still calls for improved transparency and price reporting in the wheat market.
In the following audio discussion/mash-up, host Kelvin Heppner explores whether there’s a transparency problem in the Western Canadian wheat market and ways to improve price discovery, or whether the entire pursuit of transparency is just a large distraction:
Feel free to add your opinion in the comment section below.
More on the wheat market in Western Canada: