Glacier FarmMedia | MarketsFarm – Feed grain bids in Western Canada are under pressure despite a “surprising” lack of farmer selling, as feedlots await corn imports from the United States, according to an Edmonton-based grain broker.
Susanne Leclerc, owner of Market Master Ltd. said the end of harvest is usually a time where activity ramps up. However, the arrival of corn coming from the United States into feedlots next month is softening demand for feed grains.
“We’re seeing that (demand for corn) pressure the barley markets and the corn futures haven’t been doing so hot right now,” she said. “We have seen barley prices drop off about 20 cents (per bushel) in the last week compared to the previous week.”
Read Also
U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
Leclerc added that demand from feedlots can vary from week to week.
“Mixed signals are what we’re getting. It depends on the week. People need stuff and then the next week, they’re full,” she added.
However, increased demand for feed wheat, as well as larger basis values and higher U.S. futures are causing prices to rise, according to Leclerc. She said now is the time to act for those needing cash flow.
“It’s good to take some risk out of the market and take advantage of some of these bubbles,” Leclerc said. “It follows the trend from last year where once corn hit feedlots, we didn’t see barley come down until the first half of November. We don’t know what’s going to happen to these markets. There are too many factors at play.”
Delivered feed barley prices in Alberta as of Oct. 16 ranged from C$4.33 to C$6.21 per bushel, according to Prairie Ag Hotwire. The high price was 15 cents lower than one week earlier. In Saskatchewan, prices were steady, ranging from C$4.50 to C$4.75/bu. In Manitoba, they were from C$4 to C$4.29/bu., down four cents.
For feed wheat, delivered prices in Alberta were from C$6.10 to C$8.03/bu., up 14 cents from the week before. In Saskatchewan, prices ranged from C$6.70 to C$7.13/bu. and were steady from last week. In Manitoba, a price of C$6.42 was reported, up 10 cents.
