Feed weekly outlook: Steady now but supplies will weigh

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Published: January 3, 2020

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(Photo courtesy Canada Beef Inc.)

MarketsFarm — Recent strength in U.S. wheat futures may be lending some spillover support to Canadian feed grain bids, but large supplies and a lack of aggressive demand kept the market steady heading into the New Year.

The rise in wheat futures “has made the farmer a more reluctant seller,” said Allen Pirness of MarketPlace Commodities in Lethbridge.

However, “at the same time, the feedlots have not really needed to go to the market to buy anything — they’re pretty well positioned,” Pirness said.

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Most end users were covered at least through January, he expected.

With daytime highs forecast to hover above the freezing mark in southern Alberta over the next week, the warm temperatures were also limiting some demand due to better feed conversion rates.

“Farmer selling will pick up naturally, as it does, in January,” said Pirness. If the feedlots are still hesitant to buy at that time, prices could slide.

“Supplies are still big, especially on the feed wheat side.”

— Phil Franz-Warkentin reports on MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

About the author

Phil Franz-Warkentin

Phil Franz-Warkentin

Editor - Daily News

Phil Franz-Warkentin grew up on an acreage in southern Manitoba and has reported on agriculture for over 20 years. Based in Winnipeg, his writing has appeared in publications across Canada and internationally. Phil is a trusted voice on the Prairie radio waves providing daily futures market updates. In his spare time, Phil enjoys playing music and making art.

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