(Resource News International) — Barley bids in the key Lethbridge, Alta. feeding region have improved by $5 per tonne or more in recent weeks, as most farmers busy themselves with spring seeding operations and feedlots have had to pay up in order to encourage deliveries.
A feedgrains broker in the region cautioned that the premiums may not be around for very long, given the bearish fundamentals overhanging the market.
A few weeks ago barley deliveries were being hampered by the wet conditions in Alberta that were making it too muddy to load grain, according to Jim Beusekom, of Market Place Commodities Ltd. at Lethbridge.
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Now that the weather has turned warmer and drier, producers are still not delivering grain as they focus on seeding. “Producers are preoccupied with planting the crop,” he said, noting seeding operations are now taking place a little later than normal.
“We’re out there sourcing grain from producers, and are paying a premium to producers who are able to load,” said Beusekom, noting prices were higher for nearby shipment compared to June delivery.
Spot bids in the Lethbridge area can currently be found as high as $154 per tonne, according to Beusekom, which compares to bids as low as $146 two weeks ago.
Aside from the need for a nearby premium to encourage deliveries, Beusekom said the barley market was holding steady overall. Abundant competing feed grain supplies, and declining prices in most other markets, should keep barley values under pressure overall, he noted.
“There’s nothing bullish about the market environment on a long-term basis.”
