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.