Producers on the Canadian Prairies have seen the price of feed wheat increase over the past month, and are stepping up to the plate to sell while the market is strong.
“The farmer has been a steady seller of late,” said Andrew Gallie, a trader based in Winnipeg. “They are pretty satisfied with values right now.”
When asked what the reason was for feed market prices climbing, Gallie said, “there really haven’t been any favourable feed grains to offset it. Corn has been rallying, so wheat basically had to follow suit.”
“Wheat always has some demand that you can’t substitute corn for, so if it’s a competitive feed grain – which it is – it has to follow the rest of them higher.”
Another factor adding to the bullishness of the market is a lack of higher-quality wheat, which has many end-users looking to blend feed wheat with high-quality product.
“I think we are running out of high-grade product as well, so that is adding more blending opportunities to send the values up,” Gallie said.
Gallie said he expects to see the market continue to trend higher over the next month or so, right into seeding time.
“We’re probably going to keep some kind of weather premium in here, which could delay seeding operations, with the snowpack and flooding that’s possible here over the next couple of weeks,” he said. “I can’t see these prices heading lower at least until we get the crop in the ground.”
Gallie added despite the increase in price, acres should remain static, as many producers will opt for oilseeds, which he said provide some better opportunities.
Current elevator deliveries for feed wheat are bringing as much as $6.15 per bushel in Manitoba, $5.19 per bushel in Saskatchewan, and $6.50 per bushel in Alberta, according to Prairie Ag Hotwire. Those are anywhere from $0.23 per bushel to $0.82 per bushel higher than one month ago.