Feed weekly outlook: Prices to decline in September

Barley. (Photo courtesy Canada Beef Inc.)

MarketsFarm – As the harvest approaches, the yield potential for feed grains in Alberta may depend on where they are grown, according to Erin Harakal, trade manager for Agfinity Inc. in Stony Plain, Alta.

“From what I hear, it’s going to be a bit lower (than average), (but) I think it’s going to be a hard one to say,” she said. “For example, central Alberta, they say it’s not going to be their best year but it’s going to be alright. But some areas say it’s not going to be that great.”

The high-delivered bid for feed barley in Alberta is C$9.14/bu., C$1.20 higher than last month, according to Prairie Ag Hotwire data from Aug. 11. For feed wheat in the province, the high-delivered bid is C$11.57/bu.

While prices for old crop feed barley and feed wheat in Alberta remain elevated, Harakal said bids for new crop could drop.

“For feed barley, we can see (bids) anywhere from C$400 to about C$410 per metric tonne (C$8.71 to C$8.93 per bushel) delivered into the Lethbridge area. But (the price) starts to drop day by day as we get closer to harvest and more stuff is coming off,” she said. “Right now for September-October, we’ve been staring down C$365/tonne (C$7.95/bu.) We’re slowly dropping our way down to the new crop levels.”

“It’s hard to say how much (prices) will drop in the next couple of weeks, but we’ll probably drop down to the levels that we’ll see in September,” Harakal added.

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