Canada: Barley prices buoyed by weather threat both locally and abroad
Canadian feed barley prices are being buoyed by a triple threat of weather circumstances both locally and abroad, the Western Producer reported on July 5.
Three years of dry growing conditions in Australia have tightened global feed barley supplies to the point that domestic Canadian prices have increased. Current feed barley bids are topping out at C$6.25 per bushel in Alberta, according to Prairie Ag Hotwire data.
“When you look at the entire world for barley exports, the only appreciable increase in production has been in Canada and Kazakhstan,” explained Geoff Backman, manager of Business Development and Markets for Alberta Barley.
“So we’re seeing feed markets increase the price of barley to ration that demand,” he said.
Backman noted that recently, in Alberta, feed barley prices are approximately equivalent to that of malting barley, and sometimes better.
Prolonged dryness across the Canadian Prairies also buoyed feed grain prices, as pastureland carrying capacity has suffered to the point that producers are seeking alternative feed sources. Though slightly alleviated by recent rains, a July 4 report from Saskatchewan Agriculture emphasized more rain is required for crop and pastureland to thrive.
Typically, said Backman, readily available feed corn exports from the United States keep a lid on barley prices. But with continual wet conditions in the U.S. Midwest, corn yields are uncertain.
“The big question mark here is around the U.S. corn crop and what production numbers will be, so there’s a lot of potential for the feed barley market this year,” he said.
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