Canada: Demand for feed grains currently at a standstill
Despite prices continuing to come down for feed grains in Western Canada, demand for them is currently at a standstill, according to Susanne Leclerc of Market Master Ltd. in Edmonton, Grainews reported on October 12.
“I think we’re in that lull time right now between corn and barley (deliveries) as the (U.S.) corn harvest is underway,” Leclerc said, adding that demand is steady until more corn deliveries arrive at feedlots.
“There is an opportunity for people right now to see a late bump in barley prices, but there’s an opportunity to sell and have some movement on barley until we see more corn come in.”
She also said that not only is harvest pressure contributing to price declines, but so is a lack of international export partners due to ongoing geopolitical events.
With barley and wheat harvests mostly or entirely complete in Western Canada, Leclerc still believes there is a chance for feed grain prices to fall further.
“We’re seeing more of a bump in (barley) over the past two weeks than we have in a while. But I think we see more opportunity for it to come down based on the fact that we’ll see more corn in November. But it’s a real unknown as we don’t know how everything’s going to progress internationally when everything’s so wild.
“With harvest going on down there and everything else that’s going on right now, I really don’t think anyone can predict that.”
As of October 10, delivered feed barley bids in Alberta ranged from C$5.75 to C$7.51 per bushel, down 43 cents from last month and down C$1.63 from last year, according to Prairie Ag Hotwire. In Saskatchewan, bids ranged from C$5.50 to C$5.80/bu., down 20 cents from a month ago and down 95 cents from one year ago. In Manitoba, the bids were from C$5.25 to C$5.92/bu., 36 cents lower than last month and C$1.33 lower than last year.
For feed wheat, delivered bids in Alberta ranged from C$7.76 to C$9.80/bu., 68 cents lower than last month and C$2.31 lower than last year. In Saskatchewan, bids were from C$8-C$8.88/bu., down 23 cents from last month and down C$2.88 from last year. In Manitoba, the high-delivered bid was C$8.33/bu., 20 cents lower than a month ago and C$2.51 lower than a year ago.
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