Glacier FarmMedia | MarketsFarm – An ongoing lack of demand has forced feed grain prices to drop back recently, according to Darcy Haley, vice-president of AgValue Brokers in Lethbridge.
[Feed wheat] has been so expensive for so long,” Haley commented, noting buyers wanting to acquire larger amounts are few and far in between.
“If they can’t get any volume, they’re not messing with it,” he added.
Haley said those who have been purchasing feed wheat have been some feed mills and a few pork producers, and not the cattle feeders.
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He cited feed wheat prices of C$265 to C$270 per tonne delivered to Lethbridge on Aug. 13.
“Until there’s an offer of any magnitude of tonnage…you’re not going to see a lot of demand,” Haley said.
Feed barley prices also slipped back over the last week as well, he noted, pointing out that it needs to remain C$10 to $15/tonne cheaper than corn.
Haley said feed barley for delivery next month was C$255/tonne, down C$10 from the previous week. That for January-February-March delivery was going for C$275/tonne, easing back C$5 from last week.
“The barley market might weaken up a little bit more in September and stay that way to stay in in the ration,” Haley cautioned.
The main reason being that it’s relatively easy to import corn from the United States. Also, projections have called for a large U.S. corn crop this year, with good supplies available.
