Haley said feed barley has risen over the last week by about C$10 at C$275 per tonne to Lethbridge for October-November-December delivery.

“When you get a little bit of demand with the lack of farmer selling, we move the market up,” he explained.

However, the recent increases might not push much higher, Haley speculated.

“I don’t know if it’s come to an end, but it just feels like it has settled down,” he commented.

Haley said feed wheat has also been priced at C$275/tonne, but there have been few seller at that level, so it could increase to C$285 delivered in southern Alberta.

“Producers are more focused on getting their crops off than marketing any grain right now,” he said, noting there’s an abundance of barley and wheat for feed this year.

Barley has been coming in at 43 to 46 pounds per bushel with some of it lighter than that, he said.

If barley is closer to 48 lbs./bu., Haley pointed out the buyers are not too keen on it, as it’s either more difficult to process or it takes longer to do so. That has meant corn becomes the alternative despite it being C$6 to C$8/bu. higher.

“It’s a consistent product with consistent supply,” he said.

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“We are seeing feed prices start to creep up. I think it’s because of the rail disruptions and stuff like that,” Leclerc commented. ”There definitely are some market opportunities to take advantage of right now.”

There was a brief period of chaos among Canada’s two largest railways after they locked out approximately 9,300 union members. In turn the union issued strike notices, but the Canada Industrial Relations Board imposed binding arbitration to resolve the labour dispute.

Leclerc said November-December pricing is 30 cents per bushel more than prices for September-October.

“Who knows what the markets will bring next week,” she pondered.

She quoted feed barley for September-October at C$4.80/bu. delivered in the Edmonton area, with that for November-December at C$5/bu.

As for feed wheat, Leclerc placed it at C$7 per bushel picked up in the yard in the Red Deer/Edmonton area, with number one wheat at C$7/bu. delivered.

“The feed wheat markets is a little more aggressive than the number one market,” she said.

When it came to the province’s grain harvest, Leclerc stated “We are seeing a lot of pockets of lightweight grain in Alberta. The monster crop everyone was anticipating seems to be very patchy.”

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At 12:01 a.m. on Aug. 22, both railways failed to reach an agreement with more than 9,300 workers represented by the Teamsters Canada Rail Conference. For the first time ever, traffic at both CN Rail and CPKC is halted simultaneously.

Jared Seitz, general manager of Giddyupp Grain Brokers in Spruce Grove, Alta., said sales opportunities which would normally present themselves at this time of year have been put on hold. The rail shutdown will likely drag down feed grain prices on top of harvest pressure.

“You would expect prices to be spiking, but the market just pauses for now and a lot of things will hold flat,” Seitz said. “It feels like we’re nearing the bottom and the rail strike isn’t helping anything at the moment.”

He added that even if the work stoppage only lasts one or two days, more grain buyers will rely on the cash market.
“I think everyone thinks this will be a short-term thing and that’s the expectation. But the long-term effect surely will add to everything getting more expensive,” Seitz explained. “The buyers are hesitant to do anything. Sellers are hesitant. It’s creating a strange market dynamic I haven’t seen in quite some time.

“What we’re suggesting farmers do is try to deal with their lowest quality crops first, because there does seem to be a lot of light grain … We are seeing some feedlots that are extending their discount schedule so it includes lighter grain, but we’re hearing barley at (a test weight of) 38 to 42 pounds across a large swath of Alberta. So it’s going to take some big changes from everyone who has their machinery set up for 48 lb. barley to handle all of that.”

Delivered feed barley prices in Alberta as of Aug. 21 ranged from C$4.07 to C$5.70 per bushel, with the latter down seven cents from the previous week, according to Prairie Ag Hotwire. In Saskatchewan, the range was C$4.14 to C$4.50/bu., down 25 cents, while in Manitoba, prices were steady at C$4.34 to C$4.50/bu.

For feed wheat, delivered prices in Alberta were from C$5.81 to C$7.76/bu. with the high price down 24 cents from the week before. In Saskatchewan, a price of C$6.75/bu. was reported, steady from the previous week, while C$6.29/bu. was reported in Manitoba, down 13 cents.

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[Feed wheat] has been so expensive for so long,” Haley commented, noting buyers wanting to acquire larger amounts are few and far in between.

“If they can’t get any volume, they’re not messing with it,” he added.

Haley said those who have been purchasing feed wheat have been some feed mills and a few pork producers, and not the cattle feeders.

He cited feed wheat prices of C$265 to C$270 per tonne delivered to Lethbridge on Aug. 13.

“Until there’s an offer of any magnitude of tonnage…you’re not going to see a lot of demand,” Haley said.

Feed barley prices also slipped back over the last week as well, he noted, pointing out that it needs to remain C$10 to $15/tonne cheaper than corn.

Haley said feed barley for delivery next month was C$255/tonne, down C$10 from the previous week. That for January-February-March delivery was going for C$275/tonne, easing back C$5 from last week.

“The barley market might weaken up a little bit more in September and stay that way to stay in in the ration,” Haley cautioned.

The main reason being that it’s relatively easy to import corn from the United States. Also, projections have called for a large U.S. corn crop this year, with good supplies available.

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Glen Loyns, trader and general manager for JGL Commodities in Moose Jaw, Sask., said while the recent heat and dryness has reduced yield expectations, prospects of a decent harvest are still putting pressure on prices.

“It appears that there’s probably going to be an average crop. So that’s putting pressure on some prices. Especially in the United States where you’re seeing pretty favourable growing conditions for both corn and beans,” Loyns said.

However, the warmer and drier-than-normal conditions are now starting to have a real effect on crops.

“The heat is affecting it and it’s running out of moisture. It’s going to be not as good as everyone was expecting a month ago,” Loyns added.

Despite lower corn and wheat prices in the U.S., there isn’t much in the way of grain shipments into Saskatchewan according to Loyns. He added that the feed grain market will wait and see before prices make their move.

“It’s going to be volatile until we get a very good picture of the quality and quantity (of feed grains),” Loyns said.

Delivered feed barley prices in Saskatchewan ranged from C$4.30 to C$4.75 per bushel as of July 31, with the latter steady from last week, according to Prairie Ag Hotwire. In Alberta, prices ranged from C$4.15 to C$5.88/bu., down 11 cents from the week before. In Manitoba, prices were C$4.50 to C$4.51/bu., down one cent from the previous week.

For delivered feed wheat, the price range in Saskatchewan was C$6.60 to C$7.75/bu., while in Alberta, prices were from C$6.49 to C$8.16/bu. The maximum prices from both provinces were unchanged from the previous week. In Manitoba, feed wheat was at C$6.79/bu., up two cents.

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“It’s very odd we are not seeing the reflection in the [feed] market,” stated Susanne Leclerc of Market Master Ltd. in Edmonton.

“Canola is having some positive days, and we are seeing that reflected into the canola market. But feed grains have yet to see that priced into the market,” she lamented.

One of the main reasons for stronger prices Leclerc pointed out is the Prairie weather, with a hike in daily temperatures. Highs were forecast to surpass 30 degrees Celsius across much of the region with scatter thunderstorms at best for precipitation.

She explained that grain buyers placed their focus on cheaper corn in the United States and the prospects there for a very good harvest, while suggesting there might soon be change in feed prices.

“It will be interesting to see come another week or two any of those markets ‘appreciate’ the weather,” Leclerc commented.

Leclerc said Market Master is paying five dollars per bushel for old crop feed barley picked up in the yard in the Edmonton area, with new crop prices 10 to 15 cents/bu. higher. In the Red Deer, area she said barley was C$5.20/bu. for old crop and C$5.30 for new crop.

As for feed wheat, she had only an old crop price of C$7.50/bu., noting that buyers are waiting to see how this year’s wheat turns out.

When it comes to corn imported from the United States, Leclerc said the amount had tapered off a fair bit, but more purchases were now being made. She expects volumes to pick up again, but they won’t be as much as when Prairie barley and wheat were scarce.

Moving grain by truck continued to be something an issue in Alberta, Leclerc noted, but business has been lax. Once the busy season starts towards the end of July, she said there will very likely be problems with availability of drivers and trucks.

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