By Commodity News Service Canada
WINNIPEG, Nov. 30 (CNS Canada) – A tentative agreement by OPEC (the Organization of Petroleum Exporting Countries) to cut crude oil production by over a million barrels a day has the potential to underpin feed grain markets as well, given the prominent usage of grains in alternative fuels.
Crude oil prices jumped sharply higher on Wednesday in reaction to the news, which makes ethanol production more economical.
However, corn futures at the Chicago Board of Trade held steady on Wednesday, as the OPEC news was countered by spillover selling from soybeans.
Feed barley bids in the key cattle feeding area of Lethbridge, Alberta were in the C$170 to C$175 per tonne range as of November 25, which was relatively steady compared to the previous week, according to the latest pricing information from the provincial government. Top end feed wheat prices were also steady, at C$188 to C$192 per tonne in Lethbridge.
