MarketsFarm — Imported corn from the U.S. is still the grain of choice for feedlots in southern Alberta, despite the fact feed barley is at a slightly lower price right now.
Corn traded on Wednesday at around $480 per tonne ($12.19 per bushel) in Lethbridge, said Jim Beusekom, president of Market Place Commodities in Lethbridge. Barley, meanwhile, was trading at $460 per tonne ($10.02/bu.).
“The majority of people are still using corn because they haven’t pre-purchased,” he said. “But if they were to pick today, they would likely buy barley if they can get enough of it.”
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While barley is priced lower than corn, he added there does not appear to be a greater interest in purchasing it, nor in purchasing feed wheat.
Demand for both “is very poor,” Beusekom said. “Most buyers are forward contracted and they have their feed requirements covered for spring and early summer.”
Seeding for barley and wheat has already begun in southern Alberta, despite a lack of moisture carried over from last year’s drought.
“The Lethbridge area is dry. Actually, for the most part it’s been cold and dry. Seeding has progressed significantly (at around) 40 to 50 per cent,” Beusekom said. “We’re moving into springtime, so it’s a weather market… If it starts to rain significantly across the dry areas in Canada and the U.S. and if planting gets done the way it’s supposed to, prices should come down somewhat.”
The high-delivered bid for feed barley in Alberta is $10.02/bu., up 22 cents from the past week, according to Prairie Ag Hotwire. The high-delivered bids are $8.72/bu. in Manitoba (down one cent from last week and 14 cents from last month) and $8.64/bu. (unchanged) in Saskatchewan.
As for feed wheat, the high-delivered bid in Alberta is $14.42/bu. (unchanged), compared to $13.50/bu. in Saskatchewan (up $1 from last week and $1.50 from last month) and $12.53/bu. in Manitoba (up 19 cents from last week and 73 cents from last month).
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
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