MarketsFarm — After a bit of a rally for feed grain prices over the last three to four weeks, the feedlots are on the full side, said Brandon Motz of CorNine Commodities at Lacombe, Alta.
“That normally means we back off a little bit,” he said, noting there hasn’t been an uptick in deliveries with the improved winter temperatures lately.
Motz said the rally was spurred on some lingering freight issues left over from December, and doubts the rally will continue for much longer with the downside posing a risk.
Read Also
Feed Grains Weekly: Price likely to keep stepping back
As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Barley was running at $230-$232 per tonne delivered to Lethbridge. Wheat was slightly lower compared to barley at $227-$228 per tonne.
“Demand for February/March will remain high, but I don’t think there’s a lot of new demand in terms of new contracts available,” Motz said.
Come spring there could be some potential to the upside, he said — but that also comes with issues such as crops that were left to overwinter, road conditions and weather.
— Glen Hallick reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.
