Feed weekly outlook: Demand strong for Canadian wheat

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Published: February 19, 2021

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(Photo courtesy Canada Beef Inc.)

MarketsFarm — Domestically-grown feed wheat is seeing stronger prices and increased demand — but unlike other commodities, the demand is coming from Canada itself.

Wheat has become a more desirable crop for feed rations in recent months as barley prices have risen due to increasing exports to China. With less barley available to feedlots, wheat is stepping in to fill the void.

“They have been very similar in price. They have been holding their own (and might) come up a lot for the later contracts like the April-June movement,” Erin Harakal, senior trader for Agfinity at Stony Plain, Alta. said, adding that prices in the Edmonton area have ranged from $7.50 to $8 per bushel for April-June.

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According to Prairie Ag Hotwire data from Thursday, high-delivered bids for feed wheat have run at $7.25/bu. in Saskatchewan, $7.27/bu. in Manitoba and $8.44/bu. in Alberta — at least $1.50 higher than last year in all three provinces.

Harakal also mentioned that No. 1 and 2 grades of wheat with lower protein levels have recently been making their way into feed channels, as feed wheat prices have become comparable to other varieties except durum.

According to Agriculture and Agri-Food Canada’s latest crop outlook released Wednesday, 18.5 million acres of wheat (except durum) are projected to be seeded in Canada this year, down five per cent from 2020.

— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.

About the author

Adam Peleshaty

Adam Peleshaty

Reporter

Adam Peleshaty is a longtime resident of Stonewall, Man., living next door to his grandparents’ farm. He has a Bachelor of Science degree in statistics from the University of Winnipeg. Before joining Glacier FarmMedia, Adam was an award-winning community newspaper reporter in Manitoba's Interlake. He is a Winnipeg Blue Bombers season ticket holder and worked as a timekeeper in hockey, curling, basketball and football.

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