Glacier FarmMedia – Feed grain prices were slightly higher for the week ended April 6, as demand continued to increase amid uncertainty due to rising fuel prices and the war in Iran.
Feed barley in Lethbridge was selling for C$295 to C$300 per tonne for May and June delivery, up C$5 from two weeks earlier, said Brandon Motz, owner and manager of CorNine Commodities in Lacombe, Alta. He also heard offers of up to C$310/tonne. Meanwhile, feed wheat was selling at C$305 to C$310/tonne.
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“There still seems to be some very aggressive bids (for feed barley) from the line companies,” Motz said. “Actual feedlot demand is below average this time of year, but there are a lot of moving factors.”
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As barley and wheat move through the markets, rising corn prices have weakened demand for the crop.
“Corn is trickling into the market. There is some feeding corn. Corn has always kind of been in the background, but there’s not a lot of volume. Corn prices have rallied up too. So they’ve stayed out of reach,” Motz said.
Rising fuel prices, brought on by the war in Iran, have tightened margins for grain companies and railways, resulting in surcharges and higher freight rates. Motz added that they are affecting growers’ bottom lines as well.
“That’s quite a jump if you didn’t have your spring needs already booked,” he said. “It’s definitely something to be watched and unfortunately not a lot can be done to manage that risk. The bid offer spread has to be adjusted to compensate for fuel prices.”
Where grain prices could go is hard to determine, but Motz believes there will be little movement in the near term.
“It’s safe to assume that prices will remain in this area for the next week at least. There’s nothing to suggest that anything should change,” he said. “But at the same time, this market has been one tweet way from dramatic correction on either side … We need some global shifts to take place before any of the markets come off their highs at this point.”
Prairie Ag Hotwire reported that delivered feed barley prices in Alberta ranged from C$5.01 to C$6.75 per bushel on April 6, steady from the week before. In Saskatchewan, they were also steady, ranging from C$5.12 to C$5.45/bu. In Manitoba, prices were up 25 cents at C$4.77 to C$5/bu.
Feed wheat prices in Alberta were from C$6.18 to C$8.38/bu., down three cents. Manitoba’s feed wheat price was C$6.45, up 13 cents, while Saskatchewan’s was steady at C$7.30/bu.
