Canada: Lethbridge feed barley prices strengthen on bargain buying

Lethbridge feed barley prices have strengthened on bargain buying, according to one market watcher, while demand for feed wheat is steady at best, Canadian Cattlemen reported on February 11.

Lethbridge barley prices have increased from C$200-C$205 in January to C$205-C$215 in February, as the grain becomes more difficult to source, said Jim Beusekom, president at Market Place Commodities.

“It’s not an issue, but it becomes a market factor,” he said.

Demand for feed barley has increased, he said, as buyers have been swayed by cheaper prices.

“I think the feed wheat situation is a little different.”

The amount of feed wheat being used is limited, but constant, Beusekom said. “It’s steady at best, and buyers just pick away at the supply that’s out there.”

Despite fluctuations within the market, feed grain prices in Lethbridge are stronger than those seen a year ago.

Producers saw increased amounts of export-quality wheat and barley this year, which take away from the amount of feed available.

“A lot of it is milling grade, so we have less pushback into the feed market with wheat.”

Producers are favouring malting barley, and have seen higher-quality yields this year, he said. Product that is rejected by malt companies becomes feed.

12 February, 2016