Feed weekly outlook: Cheaper corn to temper rising barley bids

Lack of farmer selling a factor in bids

MarketsFarm — Rising feed barley prices in Western Canada may be nearing their upper limit, as end users look to add more cheaper corn to their rations.

“The higher that barley and wheat get, the more attractive corn gets,” said Mike Fleischhauer of Eagle Commodities in Lethbridge. “If barley and wheat go any higher, we’ll see some of the feedlots transition to corn.”

He linked recent strength in barley and feed wheat to a lack of farmer selling, as producers focus their attention on spring seeding and harvesting the 2019 crop.

“To pull them off from the field work, you have to offer a pretty penny,” he said.

Corn delivered into southern Alberta was currently trading around $215 per tonne, while barley and wheat were trading in the $240 per tonne range.

“Corn is coming in from Manitoba quite regularly now,” Fleischhauer said.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

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