Glacier FarmMedia — Feed grain prices should continue to move upwards this spring, irrespective of rising fuel prices, said a Lethbridge-based trader.
Jim Beusekom, president of Market Place Commodities, said feed barley was trading at C$305 to C$310 per tonne in Lethbridge, with feed wheat at a similar range. U.S. corn was trading at C$295 to C$305. He said feed barley and wheat, which were trading at C$270 per tonne at the start of the month, largely followed the upward price movement for U.S. corn futures.
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Beusekom added that consistent demand and a “successful” export program for feed barley will continue to support prices over the next six weeks.
“We would expect spring and summer will be a competitive marketplace to purchase from farmers because they’ve been successful in selling their crops so far and they aren’t carrying as much as originally forecasted,” Beusekom said. “A lot of the market direction on barley is definitely still being set by corn and secondly by the exporters.”
Although the war in Iran and the halting of traffic on the Strait of Hormuz have affected energy prices nationwide, Beusekom said it hasn’t affected grain prices yet, but freight rates could change if fuel costs stay elevated. The question of who will take care of those costs is still up in the air.
“There are a lot of input costs that are creeping higher. How do you know if they are factored into those prices? It’s hard to tell,” he added. “For example, on grain that’s (shipped) for export, does the seller pay for it or does the buyer pay for it? For the grain we’re importing, it’s basically the same thing.”
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As for upcoming spring conditions, Beusekom said parts of southern Alberta and southern Saskatchewan are “leaning towards drought”, but they are still subject to change.
“It does seem Western Canada is leaning on the dry side but I want to caution everyone, rain and a snowstorm will alleviate every drought concern,” he said.
Prairie Ag Hotwire reported delivered feed barley prices in Alberta at C$4.79 to C$6.68 per bushel on March 23, up 26 cents from the previous week. In Saskatchewan, the price range was C$4.90 to C$5.45/bu., unchanged from the week before. In Manitoba, prices were from C$4.60 to C$4.71/bu., down two cents.
Delivered feed wheat prices in Alberta were from C$5.97 to C$8.41/bu. for a weekly gain of 35 cents. In Saskatchewan, prices were up 30 cents at C$7 to C$7.30/bu. In Manitoba, the price increased by three cents at C$6.27/bu.
