Glacier FarmMedia—Feed grain bids in the Lethbridge area were finding some support in early May as farmers in the region focus their attention on spring seeding.
Jim Beusekom, president of Market Place Commodities located in the southern Alberta city, said some growers have already finished their plantings and estimated that 60 per cent of the fields have already been seeded. This is despite municipalities and irrigation districts in southern Alberta agreeing last month to reduce water use if drought conditions develop this spring or summer.
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Beusekom mentioned that the Lethbridge Northern Irrigation District (LNID) and the South Saskatchewan River Irrigation District in Saskatchewan are currently rationing water.
“That led to farmers making some changes to where they’re going to allocate their water or perhaps if they’re going to plant a different field,” he said, adding that dry land received normal amounts of moisture in April at around the equivalent of 80 millimetres in Lethbridge and area.
While most feedlots are already covered for the spring and summer, barley prices have dipped lower than those for corn, according to Beusekom. While corn usage is still high, barley is looking more favourable for feedlots while selling at C$290 per tonne (C$6.31 per bushel), compared to C$305/tonne (C$7.75/bu.).
Meanwhile, prices for feed wheat have jumped over the past few weeks. Previously at C$280 to C$290/tonne (C$7.62 to C$7.89/bu.), Beusekom said they are now up to C$335/tonne (C$9.12/bu.).
“It’s a bit of a short squeeze with spring seeding. Maybe a bit of export demand and the Canadian dollar was pretty weak,” he explained. “It feels like (the rally) is over already, but I would say to farmers if you have any wheat of any class available for sale, take advantage of the full rally and sell it.”
Prices will depend on what types of weather the Prairies will see over the next three months, according to Beusekom.
“We can tune in to what the weather’s doing to some extent. That will give a sense of direction as to where prices are going to go,” he said. “We’ll certainly have to see how it goes and what happens.”
Delivered bids for feed barley in Alberta ranged from C$4.75 to C$6.64/bu., an 11-cent increase from last month, according to Prairie Ag Hotwire. In Saskatchewan, the range was between C$5.10 to C$5.75/bu., up 25 cents, while in Manitoba, bids were steady from the month before at C$4.97 to C$5/bu.
For feed wheat in Alberta, prices ranged from C$6.60 to C$9/bu., up 56 cents from one month earlier. Saskatchewan had the same range as Alberta’s while increasing 88 cents from last month. A high-delivered bid of C$7.69 in Manitoba was reported, up 58 cents.
—Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
