Glacier FarmMedia — The export market has been supporting feed grain prices and keeping them steady, said trader Evan Peterson of JGL Commodities in Saskatoon, Sask.
“China stepped up and bought a lot of Canadian origin barley, which put the price up C$40 (per tonne) off the low for new crop,” Peterson said.
He reported feed barley bids at C$290/tonne delivered in Lethbridge for old crop and C$270 to C$275 for new crop. Feed wheat was trading at C$280 to C$285/tonne delivered.
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Peterson said feedlots in southern Alberta are well-covered for grain.
“You have southern Alberta in relatively good shape right now for coverage. So you have two markets trading,” he added. “We’re poised to trade higher once we see some demand come back to the market in southern Alberta.”
Purchases of corn imported from the United States have quieted down as of late, said Peterson. But if there is continued demand for feed grains in the Canadian export market, he expects more corn to enter the markets due to its price parity with feed barley.
“If barley trends higher, you’re going to see feeders in the spring and summer switch to adding corn in their rations to limit the upside on barley,” Peterson explained.
As spring approaches, so does a potential weather market. Because of this, Peterson believes prices won’t be steady in the coming weeks.
“If we start getting some decent moisture, you’ll probably see some more grain liquidate off the farm,” he said. “Right now, we’re poised to continue to move higher or stay where we’re at. But we’re looking to go lower over the next three months.”
Prairie Ag Hotwire reported on Feb. 27 that delivered feed barley prices in Saskatchewan ranged from C$4.90 to C$5 per bushel, steady from the week before. The range in Alberta was from C$4.79 to C$6.05/bu., up seven cents from the past week. In Manitoba, it was C$4.60 to C$4.61/bu., down one cent.
For feed wheat, the price in Saskatchewan was C$7.00/bu., unchanged from the previous week. That in Manitoba was C$6.04/bu., up 10 cents. Values ranged from C$5.97 to C$7.76/bu. in Alberta, up five cents.
