MarketsFarm — The price for feed wheat is exorbitantly much higher than for barley or corn, according to Jim Beusekom of Market Place Commodities in Lethbridge.
While price reports into that area’s feedlot alley put feed barley at $465 per tonne and corn at $480, wheat is about $600, he said.
Feed wheat “is trending fairly consistent with Minneapolis and Kansas wheat futures,” Beusekom said.
On U.S. markets, the July contract for Minneapolis spring wheat surged $1.80 per bushel between May 11 and 17, reaching US$13.935/bu. That included two days of limit-up gains of 60 cents/bu., but since then it has retreated to US$13.305/bu. when trading closed on Thursday.
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Kansas City hard red winter wheat for July also incurred sharp upticks over the same time, topping off at US$13.7575/bu., only to fall back to US$12.9525 by Thursday. July Chicago winter wheat increased by US$1.8575/bu. to hit US$12.775 and pulled back to US$12.005/bu. Thursday.
Going forward, Beusekom can see feed wheat prices coming down as well.
“If export prices decrease, I can think feed values would as well,” he said.
That leads to a ratchet effect with prices rising, only for the markets to correct, with farmers now holding on to their wheat, he added.
“Then eventually, the prices go back up again.”
— Glen Hallick reports for MarketsFarm from Winnipeg.
