Glacier FarmMedia | MarketsFarm – Recent declines in the price of corn imported from the United States were not enough for feedlots to turn away from barley, a broker said.
Evan Peterson of JGL Commodities in Moose Jaw, Sask. said barley and corn were priced at C$300 per tonne, feedlots preferred barley for feeding livestock.
“It’s getting closer (for corn), but with the weakening Canadian dollar, those corn imports are actually higher in price,” he said. “We saw that spread of corn over barley at about C$15 to C$20/tonne and now it’s at about C$5 or so.”
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While corn prices aren’t competitive right now, Peterson added, they may be in a little while.
“Right now, corn hasn’t made a big move, but I feel like it’s kind of on the verge and getting closer.”
The colder winter weather can cause problems for trucks carrying grains going to feedlots, Peterson said. However, more cattle are entering feedlots as well.
“With these cattle moving a little later into feedlots, we’re now starting to see demand kind of pick up versus where we were a month ago. We were waiting for it, but now it’s finally here,” he added.
Peterson predicted feed barley to have between C$5 to C$10/tonne of room to the upside, with corn prices staying put for the rest of 2024.
“I think we’re going to need some corn to take some pressure off of the barley, especially into the spring, or else stocks will get depleted quicker than we think and we will see barley become quite expensive in the spring,” he said.
Prairie Ag Hotwire reported delivered bids for feed barley in Saskatchewan ranging from C$4.50 to C$4.75 per bushel as of Nov. 26, steady from the previous week. In Manitoba, prices were from C$4 to C$4.54/bu., up four cents from last week. In Alberta, there was a wide disparity from C$4.35 to C$6.42/bu., up 11 cents.
For feed wheat, Saskatchewan’s delivered bids were from C$6 to C$7.38/bu. and unchanged from last week. In Manitoba, the only price reported was C$6.80/bu., up 18 cents. Alberta delivered prices ranged from C$6.26 to C$8.44/bu., steady from last week.
