MarketsFarm — As combining operations begin, dryness continues to plague crops in many parts of Saskatchewan.
But while crop conditions aren’t as bad as they were during the drought of 2021, according to trader Evan Peterson from JGL Commodities in Saskatoon, crops are still very parched.
“Southern and western parts are very, very poor. But as you go east, they are better, but they’re below average,” he said. “Everyone you talk to around Saskatoon, south and west, would seem to have something started (for harvest). If they’re not going full out (now), they’re starting.”
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Shipments of U.S. corn are still coming into feedlots at “adequate levels,” according to Peterson, as declining prices have made the crop more affordable than barley. However, that doesn’t mean the domestic cereal crop is being totally eschewed.
“You’re going to see barley being traded in Alberta until mid-November,” he said. “Bids have been dropping quite substantially just due to the lack of export on (Canadian) feed barley with China and Australia working on tariffs.”
China on Aug. 5 officially lifted its tariffs on Australian barley which have been in place for three years. While the Australian government, in turn, dropped its complaint against China at the World Trade Organization (WTO), Chinese tariffs against Australian wine are still in place.
“The export demand for (Canadian) barley is very, very low. The barley has nowhere else to go besides feedlots. It’s going to push these numbers down until we find value at trade,” Peterson said.
He also anticipates prices to be steady to lower in the short-term.
“The feedlots seem to be well-covered right now. So, there’s no reason for them to chase grain. I don’t see bids moving in an upwards direction.”
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
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