Feed weekly outlook: Feedlots booking for winter underpin bids

(Photo courtesy Canada Beef Inc.)

MarketsFarm — Feed grain prices have been strong following Western Canada’s harvest, as feedlots ensure they’re covered heading into the winter.

“Last week there was some buying in the deferred months, from January onward,” Allen Pirness of Market Place Commodities at Lacombe, Alta. said.

Pirness said the strong prices were unexpected, noting that when prices climbed higher, producers started to hold back their product to support the rally.

Simultaneously, buyers have been concerned prices will go higher, and are opting to purchase more feed grains.

“These competing forces take the market higher,” he said, as farmers are waiting on optimal prices to sell.

“There’s no rush to throw in the towel just yet.”

Feed barley prices are around $265 per tonne delivered in Lethbridge, with feed wheat and feed corn prices in a comparable range.

“All three are right in the same neck of the woods,” he said.

It’s currently too early to tell the level of coverage buyers achieved, but Pirness expected prices to correct lower in coming weeks.

“If there isn’t any underlying reason for it to move higher, I think it could easily correct from these levels.”

— Marlo Glass reports for MarketsFarm from Winnipeg.

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