Feed weekly outlook: Rally likely to end soon

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Published: January 30, 2020

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Barley. (Photo courtesy Canada Beef Inc.)

MarketsFarm — After a bit of a rally for feed grain prices over the last three to four weeks, the feedlots are on the full side, said Brandon Motz of CorNine Commodities at Lacombe, Alta.

“That normally means we back off a little bit,” he said, noting there hasn’t been an uptick in deliveries with the improved winter temperatures lately.

Motz said the rally was spurred on some lingering freight issues left over from December, and doubts the rally will continue for much longer with the downside posing a risk.

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Barley was running at $230-$232 per tonne delivered to Lethbridge. Wheat was slightly lower compared to barley at $227-$228 per tonne.

“Demand for February/March will remain high, but I don’t think there’s a lot of new demand in terms of new contracts available,” Motz said.

Come spring there could be some potential to the upside, he said — but that also comes with issues such as crops that were left to overwinter, road conditions and weather.

— Glen Hallick reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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