MarketsFarm — After a better-than-expected harvest across the Canadian Prairies, feed grain prices on the region either have bottomed out or soon will, according to Evan Peterson of JGL Commodities in Saskatoon.
“They’ve dropped significantly in the past three to four weeks as harvest pressure kicked off,” he said, citing feed barley going into feedlot alley in Lethbridge at $335 per tonne delivered.
Following a growing season that saw dry conditions adversely affect Prairie crops, the more seasonable weather in July and August helped to soften the impact.
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Crops in Saskatchewan are developing in opposite directions, the province’s latest crop report said. Growing conditions in the province vary, with some areas receiving enough rain while other locations are experiencing crop stress due to hot, dry conditions.
“Most farmers were pleasantly surprised their yields were better than expected,” Peterson said, noting some growers were selling off of the combine — but more recently that has changed.
“It seems like the farmer participation is starting to dry up across the Prairies. Most cereals are done… for the most part,” he continued, adding the growers were now focusing on their canola and not thinking about selling their cereals.
As for corn, its price has begun to narrow when compared to barley. That, Peterson suggested, could lead the feed grain market to become rangebound, with prices shifting a few dollars back and forth.
However, one element continuing to counter the decline in feed prices was logistics, he said. The ongoing shortage of trucks and drivers has made it difficult to move product.
“That’s putting a bottom on prices,” Peterson said.
Feed barley prices across Western Canada have been steady to lower, according to Prairie Ag Hotwire. As of Wednesday, barley lost 23 cents per bushel in Manitoba with prices at $5.25-$5.82 delivered, while those in Alberta were down 22 cents at $5.75-$7.62/bu. In Saskatchewan, prices were steady at $5.50-$5.80/bu.
Feed wheat prices were also steady to lower but they didn’t slip as much as barley. Those in Manitoba shed eight cents at $8.46/bu., and in Alberta they were down 14 cents at $7.71-$9.93/bu. In Saskatchewan prices held at $8-$9.10/bu.
— Glen Hallick reports for MarketsFarm from Winnipeg.
