Glacier FarmMedia – Sufficient supplies of domestic barley and wheat along with the ongoing influx of corn from United States, have continued to keep a lid on feed grain prices on the Canadian Prairies. That’s especially so in southern Alberta, according to Darcy Haley, vice-president of Ag Value Brokers in Lethbridge.
“The demand for wheat in southern Alberta is pretty much non-existent,” Haley said in a May 9 interview, citing hard red wheat recently went for C$335 per tonne delivered to feedlot alley.
“I do have a few other sellers looking for wheat that’s soft white spring or a white wheat. The problem with that is nobody is feeding it really,” he added, noting any prices would be the same as barley or come with a C$5/tonne premium.
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“The barley market is very, very quiet. Very little trade, zero demand, and very few sellers at the same time,” Haley explained, quoting feed prices of C$290 to C$295/tonne for May-June-July delivery.
He said something in the feed market needs to happen, especially when it comes to demand, which he stressed such will eventually happen at some point.
“But we are feeding a lot of corn,” Haley stated, expecting such to carry on for at about another month and a half.
Also, the rain Alberta recently received, especially that in the south, has been “very bearish” on the feed market,” he said.
Yet another factor that has continued to weigh on values is the amount of old crop barley and wheat still available. Haley warned that “it’s going to get interesting” when the old and new crops are available.
Exports as well remained “the fly in the ointment,” he added, suggesting prices likely won’t become as cheap as overseas buyers might think they will.
Prairie Ag Hotwire reported that feed barley prices across Western Canada were steady to lower over the week ended May 8. Saskatchewan and Manitoba were unchanged at C$5.10 to C$5.75 per bushel delivered and C$4.93 to C$5 respectively. Alberta saw a 22-cent slip across the province at C$4.75 to C$6.42/bu.
Movement over the week in feed wheat prices was mixed, according to the Hotwire. They were unchanged in Saskatchewan at C$6.60 to C$9/bu. del., but down four cents in Manitoba at C$7.65. On the whole in Alberta, prices were up 47 cents at C$6.60 to C$9.47/bu.
— Glen Hallick reports for MarketsFarm from Winnipeg