MarketsFarm — After months of declining prices, one trader is now seeing a “pop” in the feed barley market.
Evan Peterson of JGL Commodities at Saskatoon explained that logistics issues caused transportation delays for barley and resulted in feedlots ordering more than they needed last fall — but by the time spring came around, demand quickly fell off.
“Now, deliveries are starting to get caught up, so we’re starting to see a little bit of demand come back,” he said. “Farmers don’t have their marketing hats on right now. They have other plans to get in the fields and start thinking about seeding… They’re not really engaged in selling a lot right now.”
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Peterson added that while a large amount of oats in feed rations helped ease barley prices, he expects them to slowly rise going into May.
“After that, we get into a weather game. If we get into April and May and then we start seeing some good rains established in June, I think barley prices will fall off. We’ve got quite a bit of downside risk for June and July heading into new crop,” Peterson said.
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The high-delivered bid for feed barley in Alberta was $9.17 per bushel as of Wednesday, up two cents from the month before and down 63 cents from one year earlier, according to Prairie Ag Hotwire. In Saskatchewan, the high-delivered bid was $8/bu. (up 20 cents from last month, down 64 cents from last year), while in Manitoba, it was $7.25/bu. (steady from last month, down $1.53 from last year).
For feed wheat, the high-delivered bid in Alberta was $11.70/bu. (down five cents from one month earlier, down $1.91 from one year earlier). In Saskatchewan, it was $11/bu. (50 cents more than last month, $1.25 less than last year), while in Manitoba, it was $10.12/bu. (down 16 cents from last month, down $1.69 from last year).
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
