Glacier FarmMedia — As old crop winds down and buyers wait for new crop to come off the fields, feed grain prices are coming down, said a Saskatchewan-based trader.
Evan Peterson of JGL Commodities in Moose Jaw attributed the declines to seasonal pressure amidst mid-summer lack of demand.
“Lethbridge is trading for C$295 to C$300 (per tonne),” Peterson said about current feed barley prices.
He added that some feedlots are transitioning away from barley and more towards corn, taking advantage of historically low United States futures prices for the latter.
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“Futures started to pull back with the anticipation of a larger U.S. corn crop. So we’ve seen corn traded in southern Alberta for old crop. It also puts pressure on barley prices as well,” Peterson said.
He also mentioned corn prices were trading for C$290 per tonne delivered. Recent rains across the Prairies reduced prices and provided not only much-needed moisture in drier fields but also confidence that farmers can deliver a good crop in the fall.
Right now, buyers are waiting and seeing how the upcoming barley crop will turn out, Peterson said, before determining whether to purchase barley or corn. But demand for feed grain has also slowed down.
“Cattle numbers have diminished across the Prairies and in southern Alberta. The demand for grain in the summer did not seem to be there as it had been in the past,” he said.
Downward pressure on barley and corn prices should continue as growers get closer to harvest.
“(Feed grain prices will) probably be on a slow, downward, sideways trend into new crop to see how things shape out after the combines start rolling,” Peterson said.
Delivered feed barley prices in Saskatchewan ranged from C$5.25 to C$5.51 per bushel on July 9, down 29 cents from a month earlier, Prairie Ag Hotwire reported. Prices in Alberta were from C$5.29 to C$6.64, down 33 cents. Those in Manitoba ranged from C$5.04 to C$5.35 and were steady from one month ago.
