MarketsFarm — Feed markets in Western Canada have softened slightly following a jump in prices earlier this month.
Nelson Neumann, a grain trader for Agfinity, said barley supply was tight earlier in the month as buyers rushed to secure their feed before spring road bans, seeding season and poor weather conditions hampered deliveries.
“We saw markets rallying before road bans came into effect,” he said. “Supply was limited.”
Some producers wait until April to bring their grains to market, further tightening supplies.
However, barely prices have corrected off of earlier highs. “We’ve been seeing the markets softening up a bit as bidders are buying less aggressively.”
“I don’t feel like the floor will fall out,” said Neumann. Prices have leveled out from $265 to $270 per tonne delivered in Lethbridge.
As barley supplies continue to tighten, Neumman expects markets to remain consistent in months to come.
High barley prices, trade uncertainty and impending floods may see producers deciding to grow barley over corn and canola, which would improve supply levels.
However, feed wheat markets have softened as well, as buyers have coverage booked into summertime. “There’s lots of supply,” Neumann said.
— Marlo Glass writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market reporting.