Canada: Southern Alberta seeing slight increase in feed barley prices
Southern Alberta is seeing a slight bump up in feed barley prices, according to one trader.
Evan Peterson of JGL Commodities in Saskatoon said recent export sales of the grain have resulted in increased prices. He also said grain elevators have been more aggressive in barley purchases of late, Canadian Cattlemen reported on March 27.
“It is pushing prices up in southern Alberta, kind of from the lows of C$270 (per tonne) back up to probably C$300 delivered for April, May and June moving forward,” Peterson added.
He also explained that corn and barley prices are at near-parity.
“You’ve seen corn futures at US$4.40 per bushel, coming off the lows of US$4.00 per bushel, which is now putting corn at the same value as barley,” Peterson added.
Dry conditions on the Prairies are currently at the forefront of growers’ minds with many of them reluctant to forward price feed grains. However, heavy snowfall in parts of southern Alberta as well as central and southern Saskatchewan nearly a month ago have eased concerns.
“I think snow pack levels are getting a little bit better. Although I think we’re going into spring with below-average soil moisture,” Peterson said.
However, warmer temperatures are fast approaching as forecasts in the southern half of Saskatchewan are calling for the mercury to rise up to 13 degrees Celsius in the first week of April with little, if any precipitation.
“We just need to get the crop in the ground and hope it rains,” Peterson added. “We’ll see guys in the field probably in the next four or five weeks.”
He believes that with growing demand and overseas exports, feed grain prices are coming off their lows. However, Peterson doesn’t think there will be strong rallies in the short-term.
“Farmers are in the feeding mentality and are not focused on selling grains. It will be a little bit harder to buy it from the farmgate into the spring. I’m kind of foreseeing not going into a bullish trend by any means, but I think (prices are) going to be sideways for a while,” he explained.
Bids for feed barley in Alberta ranged from C$4.38 to C$6.42/bu., 22 cents more than last week but steady from the month before, according to Prairie Ag Hotwire as of March 26. In Saskatchewan, prices were steady at C$4.55 to C$5.50/bu., while in Manitoba, they were unchanged at C$4.76 to C$5.00/bu.
For feed wheat in Alberta, prices ranged from C$6.68 to C$8.30/bu., up five cents for the week but down 54 cents from the month before. In Saskatchewan, they were between C$6.85 to C$8.13/bu., down two cents from the week before and down 25 cents from last month. In Manitoba, the high-delivered bid was C$7.22/bu., down 21 cents from last month.
27 March, 2024
