CNS Canada — Following recent rains across Western Canada, producers have opened their bins and are selling grain again for feed, taking some pressure off of the market.
“It’s some relief from the rain that’s happened across the Prairies in the last two weeks. It’s allowing producers to comfortably sell the rest of their old-crop grain,” said Allen Pirness of Market Place Commodities in Lethbridge.
There had been concern that due to the dry conditions there would be reduced yields come fall. But following rains across the majority of the Prairies, producers are feeling more optimistic about 2018’s crop prospects.
Read Also
CBOT Weekly: Additional soybean purchases strengthen U.S. soy
There were good gains for the Chicago soy complex during the week ended Feb. 4, due to positive news that Wednesday.
“We haven’t made any more grain, but perception has changed to where we may,” Pirness said. “The odds are greater that we will have a bigger crop than what could have happened a few weeks ago without the rain.”
Demand is also starting to wane for the 2017 crop. As summer sets in, feedlots are becoming less crowded as cattle head off to slaughter and aren’t being replaced.
There is, however, some pressure on the feed grain market from south of the border. The corn market in the U.S. is down, which is pressuring Canadian feed grains.
Feed barley is currently trading around $250 per tonne. In the Lethbridge area, feed wheat is also around the $250 per tonne mark, while corn is priced slightly higher at $255 per tonne.
Some new-crop sales are happening as well; due to the optimism following the recent rains, new-crop prices are around $20-$25 per tonne less than old-crop bids.
“(It) looks like a pretty good supply coming at us in Western Canada and then also new-crop corn values have come down significantly here too in the Midwest,” Pirness said.
— Ashley Robinson writes for Commodity News Service Canada, a Glacier FarmMedia company specializing in grain and commodity market reporting.
