Canada: Feed barley, wheat prices coming down
Despite a hot and dry summer across much of the Prairies, prices for feed barley and feed wheat have fallen off over the past month, the Canadian Cattlemen reported on August 31.
The high-delivered bid for Alberta feed barley was C$8.06 per bushel, C$1.42 less than one month ago, according to Prairie Ag Hotwire. Those in Saskatchewan and Manitoba were C$6.50/bu. (down C$1) and C$6.40/bu. (down C$1.10), respectively. The high-delivered bid for feed wheat in Alberta was C$10.75/bu., 95 cents lower than last month. In Saskatchewan and Manitoba, they were C$9.50/bu. (down 85 cents) and C$8.65/bu. (down C$1.20), respectively.
Jim Beusekom, president of Marketplace Commodities in Lethbridge, said the general trend over the past month for feed grain prices have been lower, but he also outlined multiple factors behind the declines.
“Since the start of August, there’s harvest pressure. There’s available supply from producers and although the crop is smaller due to drought pressure, there still is supply available right now,” he said.
“To add to that, 50 to 60 per cent of Feedlot Alley is using corn right now. They have that corn purchased and coming in and they will continue to use what they have. It’s priced competitively with barley, anyway.
“It’s more about what corn is doing rather than what barley and wheat are doing,” he added. The December corn contract on the Chicago Board of Trade lost 32.25 U.S. cents/bu., to US$4.8075 since July 31.
Beusekom added that a lack of demand for feed barley and feed wheat has also pressured prices.
“The prices defied the (Statistics Canada supply/demand) report that said we’re short on barley compared to a year ago. It’s because the corn market is strong, which in turn dropped the barley market,” he said.
In order from largest to smallest amounts, Beusekom listed the feed grains currently going to feedlots as corn, barley, distillers’ dried grains with solubles (DDGS), wheat and assorted grains such as rye, oats and triticale.
“Until there’s price action that shows the market is no longer downtrending, then I’ll say it’s different. But at this point, it’s in a downtrend. So you can expect further (price) declines over the next few weeks,” he said.
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