Canada: Demand for feed barley remains limp
As demand for barley remains limp, it has become rather difficult to move the feed grain, according to Darcy Haley of Ag Value Brokers in Lethbridge.
“There’s just no demand. We did barley March 10 at C$320 per tonne, and in April through to July it traded at C$328. That’s C$7-C$10 cheaper than corn,” Haley said, noting barley was currently at C$315 in the Lethbridge area.
“I have barley in front of me that I can’t sell, just because they don’t need it,” he added.
In the meantime, farmers have been hanging onto barley rather than selling it, something Haley disagreed with.
“I think producers are making a huge mistake. They should be moving something,” he said, suggesting farmers need to check grain elevators for prices and tail-end exports.
“Where’s the risk to the buyer? Through the rest of the fall and the winter there’s virtually no risk,” Haley said.
“One aspect that’s working in barley’s favour here right now is the price of corn distillers dried grains with solubles (DDGS),” he noted.
DDGS, he said, were currently $435/tonne and most often make up 20 per cent of corn rations as they are a protein supplement — and barley contains more protein but less energy, while corn is the opposite way.
“If they switch back to barley or half corn and half barley, they can reduce [DDGS],” he said, expecting such is very likely to happen in a small amount from January to March.
“If corn DDGS continue to be priced at that value, as time goes on, we’ll see the end user really contemplate switching back to barley,” Haley said.
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