Farmers still holding onto old crop feed barley in hopes of better prices may be out of luck this year, as bids continue to drift lower with attention in the market turning to the upcoming new crop.
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.
With farmers across Western Canada getting ready to plant their crops or they have already made a few rounds in the field, feed grain prices across the Prairies remained in a holding pattern, according to Jerry Klassen of Resilient Capital in Winnipeg, Man.
Feed barley bids in Western Canada continue to find some support as the calendar turns to spring, with seasonal road restrictions lending some nearby support to prices.
Seasonal trends and rising corn prices have underpinned the feed grain market in Western Canada over the past few weeks, although ample supplies will likely limit the upside going forward.