Feed weekly outlook: Barley market cools ahead of New Year

More strength is still likely, however

(Photo courtesy Canada Beef Inc.)

MarketsFarm — The feed market in Western Canada may be stabilizing heading into the holiday season, but underlying fundamentals remain supportive and could lead to more strength in the New Year.

While the market was holding steady in mid-December, “I think it will go back up in January/February/March,” said Mike Fleischhauer of Eagle Commodities in Lethbridge.

“The export market is still very strong and there are still a lot of elevators paying high prices for barley, which leaves the feed market for the cattle guys paying higher prices as well.”

While the export market should remain supportive, one limiting factor will be corn imports from the U.S., which are already being booked.

“Come February, you will see unit trains of corn coming in… every week,” Fleischhauer said.

Looking ahead to the 2021 growing season, the solid barley prices are already drawing interest for seeding more acres, according to Fleischhauer.

However, prices for many other crops, such as canola, are also very favourable.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

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