Glacier FarmMedia | MarketsFarm — There is still plenty of uncertainty in feed grain markets despite the delay in potential tariffs for goods on both sides of the Canada/United States border, said Brandon Motz, owner and sales manager of CorNine Commodities in Lacombe, Alta.
“The market was a little bit apprehensive coming into this week. So not a lot of trading was taking place,” he said. “Thirty days gives us a little bit of time, but still there’s uncertainty. Guys that need coverage are weighing the options. We saw the cattle (futures) react very heavily to that news.
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“But on the feed grain side, I think it’s pretty much status quo and in a bit of a holding pattern here. No sharp rallies or sharp declines in the market.”
Meanwhile, corn is starting to price itself out of the feed grain market due to rising futures at the Chicago Board of Trade as many feedlots prefer barley.
“There are retaliatory measures that could affect corn values on the tariff side,” Motz added. “But either way you slice it, ending stocks are going to be very snug, whether you’re talking about corn or barley.”
He said Alberta’s cattle market will be heavily affected by potential tariffs and that effect will be felt in the feed grains.
“If we lose the ability to feed cattle because of tariffs, we need to try to figure out a new path forward,” Motz said. “Unless there’s some fresh news, the anticipation is we will sit kind of where we’re at, at the moment. But at this point, anything is possible.”
Delivered bids for feed barley in Alberta ranged from C$4.75 to C$6.68 per bushel on Feb. 5, with the maximum price down two cents from the previous week, according to Prairie Ag Hotwire. In Saskatchewan, prices ranged from C$5.00 to C$5.50/bu., steady from one week earlier. In Manitoba, the only price was C$4.87/bu., 15 cents lower than last week.
For feed wheat, Alberta’s prices ranged from C$6.37 to C$8.57/bu., with the high price up three cents from the previous week. In Saskatchewan, the range was C$7 to C$8/bu., up 25 cents. In Manitoba, the only price was C$7.06/bu., up 14 cents.
