Glacier FarmMedia — Ample supplies and a lack of demand are weighing on Western Canadian feed barley in early October, with both buyers and sellers reluctant to push values one way or the other.
“Feed grains are under pressure,” said Brandon Motz of CorNine Commodities in Lacombe, Alta. He said good crops were limiting buying interest, while farmers were content to hold onto their recently harvested supplies to hold out for better prices if they can.
“The farmer isn’t really a big seller. … They’ve seen the prices tumble,” said Motz, adding that “bin lids are locked.”
Read Also
Good progress made in Sask. harvest
Combining in Saskatchewan is in the home stretch as the province’s agriculture department reported it at 84 per cent complete. Although the harvest advanced 16 points during the week ended Sept. 29, it was eight points behind the five-year average.
High cattle prices may also be negatively affecting the grain market, as feedlots must put out record cashflow to bring cattle in.
“We do expect demand to come back in at the end of this year or the beginning of next,” said Motz.
“Who blinks first? That’s the question — the buyer or the seller?” asked Motz. “As long as the farmer has cash flow, they’re willing to wait.”
U.S. corn prices are also relatively high, limiting competition from corn imports.
Feed barley into Lethbridge, Alta., was priced at C$244 to C$255 per tonne as of Sept. 26, according to the Alberta government’s weekly market review. That was down by about C$5 to C$10 per tonne on the week. However, values were steady to higher in other parts of the province.
Corn coming into Lethbridge was priced at C$293.33 per tonne as of Sept. 26, up from C$289.67 the previous week.
