Feed barley under pressure, but opportunities available

Corn downturn likely to keep feedlots looking to extend coverage

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Published: February 22, 2024

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Glacier FarmMedia – Feed barley bids in Western Canada remained under pressure in mid-February amid continued imports of corn from the United States and the relatively mild Prairie winter. However, localized spot opportunities do pop up occasionally.

Many feedlots continue to work through U.S. corn contracted earlier in the marketing year, but the downtrend in corn futures should keep them looking to extend that coverage. Corn futures at the Chicago Board of Trade hit fresh contract lows on Feb. 22, with prices at their softest levels in over three years.

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Meanwhile, barley bids have also trended lower, with average prices also at their lowest levels since December 2020. While bids over C$6.00 per bushel can still be found in southern Alberta, that’s down by about 50 cents over the past month. Meanwhile, average prices are closer to the C$5.00 per bushel or lower in Manitoba and Saskatchewan.

However, an example of pricing opportunities above the average would be some select Olymel facilities in Saskatchewan that recently upped their contracts for Feb-April delivery to C$5.25 to C$5.50 per bushel – well above what the local line companies are offering.

Looking ahead, while the nearby trend remains pointed lower, seasonal price patterns are typically supportive for barley heading into the spring as uncertainty over new crop production brings in some risk premiums. Early indications point to acreage declines in both Canadian barley and U.S. corn, with the ongoing dryness concerns across much of Western Canada another possible supportive influence.

About the author

Phil Franz-Warkentin

Phil Franz-Warkentin

Editor - Daily News

Phil Franz-Warkentin grew up on an acreage in southern Manitoba and has reported on agriculture for over 20 years. Based in Winnipeg, his writing has appeared in publications across Canada and internationally. Phil is a trusted voice on the Prairie radio waves providing daily futures market updates. In his spare time, Phil enjoys playing music and making art.

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