Feed weekly outlook: Strong demand supports prices

Barley. (Photo courtesy Canada Beef Inc.)

MarketsFarm — Feed grain prices on the Prairies have been stronger, and well supported by strong demand.

Nelson Neumann of Agfinity in Lethbridge said strong feed barley prices were due to an uptick in exports from the Prairie provinces.

“That provided a nice support to the price floor,” he said, noting market participants had previously been concerned that supply would outweigh demand a few weeks earlier.

However, Neumann noted, he didn’t expect prices to “run to the moon.” There was a flurry of buying last week, but this week was comparably quieter.

Prices for feed barley delivered in Lethbridge have been around $240 per tonne.

“That’s a pretty even support number, I don’t see it going much higher in the near future.”

Many buyers are trying to secure deliveries into May when sellers may be busier. Seeding is just around the corner, along with the harvest of last year’s overwintered crops. Instances of snow and cold weather across the Prairies are likely to complicate matters further.

“It’s going to be a busy May for a lot of people,” Neumann said.

— Marlo Glass reports for MarketsFarm from Winnipeg.

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