The work stoppage at the Canadian National Railway (CN Rail) and Canadian Pacific Kansas City (CPKC) will adversely affect feed grain sales and deliveries, according to one grain broker.
An ongoing lack of demand has forced feed grain prices to drop back recently, according to Darcy Haley, vice-president of AgValue Brokers in Lethbridge.
Glen Loyns, trader and general manager for JGL Commodities in Moose Jaw, Sask., said while the recent heat and dryness has reduced yield expectations, prospects of a decent harvest are still putting pressure on prices.
Feed grain prices took a sharp drop across most of the Canadian Prairies during the week of June 24, as a broker pointed to the potential for good crops this year as the reason why.
Susanne Leclerc, owner of Market Master Ltd. in Edmonton, said moisture levels in Alberta are not distributed evenly with the north seeing plenty of rain and the south becoming drier. A recent cold snap between Calgary and Edmonton plunged lows to around the freezing mark earlier this week, while snow fell over parts of the Foothills.
Corn from the United States continued to move into Canadian feed channels at a steady pace, but little fresh business is going on the books as end users turn their attention to new crop production prospects.