Glacier FarmMedia — A Lethbridge, Alta.-based broker thinks feed grain prices will trade rangebound in the short term amidst a lack of demand.
Darcy Haley, vice president of Ag Value Brokers, described the harvest in southern Alberta as “phenomenal” as crops were assisted by heavy rains in June and July. He added that yields in the Calgary area were at their highest in “seven or eight years”.
“I wouldn’t call it a bumper crop, but it was very close. Very, very good crops in Alberta (this year),” Haley said. “For the most part, other than in southwest Saskatchewan, I haven’t heard a lot of negatives at all when it comes to crop production.”
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However, warmer temperatures led to an extended grass season for livestock, meaning cattle entered feedlots later than usual. Instead of facing feed shortages due to drought as seen in the past few years, there is very little need for more feed.
Domestic buyers are generally well covered with ample supplies, while lightweight cattle don’t need very much grain to start, said Haley, adding that feedlots are only willing to pay so much while “you have a farmer who is not liking the price, period.”
Buyers and sellers are usually about C$5 to C$10 apart, and Haley said “nobody moves unless somebody absolutely has to have it or somebody has to move it.”
He was blunt in his assessment of where prices will go over the next few weeks.
“Flat,” he said. “They’re not going to do much of anything. I think they’ll stay flat for quite a while.”
