CNS Canada — The seasonality of the feed grain sector is contributing to a firmer tone in Alberta barley and feed wheat bids heading into the New Year.
“We’ve seen bids in our office on feed barley jump up a decent amount,” said Nelson Neumann, a trader with Edmonton-area grain brokerage Agfinity.
He linked the strength to a combination of end-users looking to secure supplies ahead of the holidays and producers closing their bins in hopes of seeing better prices.
Looking past the Christmas and New Year’s period, Neumann expected movement would pick up. While increased deliveries could weigh on prices, “there will still be stronger pricing come January.”
Barley into Lethbridge was trading at about $260 per bushel in late December, while feed wheat was in the $240-$243 area, according to Neumann.
Corn imports from the U.S. were still displacing some domestic feed grains in rations, but Neumann said corn was looking more expensive, trading at roughly the same price as barley into Lethbridge.
While more wheat may have been downgraded into feed grades this year, some of the borderline grain is making it into the elevator system and getting bumped up to a No. 3 or even 2, said Neumann.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Glacier FarmMedia company specializing in grain and commodity market reporting.