MarketsFarm – Much-needed rains falling onto most parts of Alberta have created ideal growing conditions for feed grains in the province, which has already created a slight decline in prices.
“Southern Alberta has been very, very dry, but we’ve had anywhere from four to six inches of rain over the last three weeks,” said Mike Fleischhauer, trader at Eagle Commodities Ltd. in Lethbridge, Alta. “(It’s been) widespread all the way up through Alberta…Saskatchewan’s got good moisture (and also in) the south. There are a few pockets that don’t, but everything’s bang on and I think that’s why the prices have softened a little bit, because there are some good forecasts and the crops have looked good.”
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Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
However, Fleischhauer is waiting for the United States Department of Agriculture’s (USDA) acreage report to be released on June 30 before determining how quick of a transition there will be from corn to cereal crops.
“Right now, they’re pretty much even. Basically, a lot of the feedlots have been strictly corn and unless there’s a big price difference, I don’t see them moving at this point in time,” he said. “There is still a pile of corn going into southern Alberta.”
The high-delivered bid for Alberta feed barley is C$9.69 per bushel, down 54 cents from the past week. In Saskatchewan, the high-delivered bid is C$9/bu. (up 25 cents from last month), and in Manitoba, it’s C$8.69/bu. (down 27 cents). For feed wheat, the high-delivered bid in Alberta is C$14.83/bu. (down 95 cents from last month), C$12.75/bu. in Saskatchewan (down C$1.75) and C$12.55 in Manitoba (down C$1.55).
Fleischhauer said that while the conflict in Ukraine and other factors overseas will support feed grain prices, he believes they will continue to slowly go down.
“Everything is down (in price),” Fleischhauer added. “My outlook is that (they’re) going to continue to slide a little bit, but not too bad.”
