Glacier FarmMedia—While seeding progress has been varied across Alberta and Saskatchewan this spring, healthy growing conditions are pressuring prices according to Erin Harakal, trade manager for Agfinity Inc. in Stony Plain, Alta.
She mentioned that some producers around Calgary have already seeded 70 per cent of their acres, while areas around Edmonton are also progressing well. Many areas have received rain which has improved growing conditions in recent days, but some places haven’t been so lucky.
“There’s not much happening in the Peace (region) and Saskatchewan has been hit and miss,” Harakal said. “But it’s been good. Things are a lot better moisture-wise this year than they were last year.”
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Feed barley for May-June delivery continues to be the strongest, with Harakal reporting most prices in the Lethbridge area to be between C$275 to C$285 per tonne (C$5.99 to C$6.21 per bushel). However, she also heard prices as low as C$250/tonne (C$5.44/bu.)
“There’s the anticipation we should have lower new crop prices for that July-August timeframe right now, approximately C$10/tonne lower,” Harakal said.
She added that ideal growing conditions, plentiful grain supplies and less cattle on feed should pull prices back even further.
“(Cattle) are not eating as much and people have been booking (grain) for the May-June-July timeframe for a while now. There’s not usually a ton of availability and space. Typically, that will affect prices, (causing them) to come off just as we have lots of supplies since producers have been holding out for higher prices. There’s still lots of feed barley out there,” Harakal said.
Delivered feed barley prices in Alberta as of May 15 ranged from C$4.75 to C$6.42/bu., according to Prairie Ag Hotwire, representing a seven-cent loss from last month and a C$2.61 loss from last year. In Saskatchewan, prices were from C$5.10 to C$5.75/bu., up 50 cents from one month earlier but down C$2 from one year earlier. In Manitoba, prices were between C$4.93 and C$5/bu., steady from last month but down C$1.93 from last year.
For feed wheat, Alberta prices were C$6.60 to C$9.53/bu., up C$1.09 from last month but down C$1.77 from last year. In Saskatchewan, prices ranged from C$6.60 to C$9/bu., up 88 cents from one month earlier but down C$1 from the year prior. There was one price reported in Manitoba at C$7.72, up 43 cents from mid-April and down C$1.99 from one year ago.
