Glacier FarmMedia | MarketsFarm—The work stoppage at the Canadian National Railway (CN Rail) and Canadian Pacific Kansas City (CPKC) will adversely affect feed grain sales and deliveries, according to one grain broker.
At 12:01 a.m. on Aug. 22, both railways failed to reach an agreement with more than 9,300 workers represented by the Teamsters Canada Rail Conference. For the first time ever, traffic at both CN Rail and CPKC is halted simultaneously.
Jared Seitz, general manager of Giddyupp Grain Brokers in Spruce Grove, Alta., said sales opportunities which would normally present themselves at this time of year have been put on hold. The rail shutdown will likely drag down feed grain prices on top of harvest pressure.
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“You would expect prices to be spiking, but the market just pauses for now and a lot of things will hold flat,” Seitz said. “It feels like we’re nearing the bottom and the rail strike isn’t helping anything at the moment.”
He added that even if the work stoppage only lasts one or two days, more grain buyers will rely on the cash market.
“What we’re suggesting farmers do is try to deal with their lowest quality crops first, because there does seem to be a lot of light grain … We are seeing some feedlots that are extending their discount schedule so it includes lighter grain, but we’re hearing barley at (a test weight of) 38 to 42 pounds across a large swath of Alberta. So it’s going to take some big changes from everyone who has their machinery set up for 48 lb. barley to handle all of that.”
Delivered feed barley prices in Alberta as of Aug. 21 ranged from C$4.07 to C$5.70 per bushel, with the latter down seven cents from the previous week, according to Prairie Ag Hotwire. In Saskatchewan, the range was C$4.14 to C$4.50/bu., down 25 cents, while in Manitoba, prices were steady at C$4.34 to C$4.50/bu.
For feed wheat, delivered prices in Alberta were from C$5.81 to C$7.76/bu. with the high price down 24 cents from the week before. In Saskatchewan, a price of C$6.75/bu. was reported, steady from the previous week, while C$6.29/bu. was reported in Manitoba, down 13 cents.
