MarketsFarm — As barley and wheat supplies for feed remain tight, demand for corn imports from the U.S. remains strong — but a rally in corn over the last couple of weeks is putting strain on the market, according to Brandon Motz of CorNine Commodities at Lacombe, Alta.
“It is definitely deterring sales and/or purchases as of today, where the prices are at,” he said, but stressed it’s too early to declare corn has “officially priced itself out of the market.”
At the Chicago Board of Trade, the nearby July corn contract closed Wednesday at about US$10.75 per bushel; a week ago, it was at US$7.78/bu.
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To Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, there are two main reasons for recent increases for feed barley and wheat. Haley said on March 12 that there’s an ongoing lack of farmer selling, plus stiff competition from the grain companies looking to export barley.
Should U.S. corn become too expensive, Motz said that will lead to another issue: what to replace it with? Given the tightness of barley and wheat stocks, there are not many alternatives.
Cash prices for feed barley and wheat have remained relatively steady in Western Canada, he added. Once spring planting is underway, he believes the market should begin to have a better idea toward new-crop supplies.
Motz said CorNine pegged corn prices at $450-$460 per tonne, going into Lethbridge. Feed barley was lower at $440-$445, while he didn’t have a price for wheat.
Over the last week feed barley prices have been relatively steady, with Alberta holding at $7.72-$9.80 per bushel, according to Prairie Ag Hotwire. Saskatchewan remained firm at $7.90-$8.86/bu., while Manitoba saw a two-cent drop at $8.50-$8.76/bu.
Feed wheat in Saskatchewan bumped up 25 cents on the week, at $9.50-$12.50/bu. Meanwhile, Alberta and Manitoba remained unchanged, at $9.50-$13.61 and $11.81/bu. respectively.
— Glen Hallick reports for MarketsFarm from Winnipeg.
