Feed weekly outlook: Feed grain bids fall with rain

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Published: July 26, 2019

“All of our customers in feedlot alley are all thinking the same thing – that ‘prices will go down.’”  Photo: Thinkstock

MarketsFarm – Improving crop conditions have weighed on Western Canadian feed barley prices over the past month as attention turns from the tight old crop supply situation to the upcoming harvest.

“Prices are dropping every day it rains,” said Mike Fleischhauer of Eagle Commodities in Lethbridge, Alta. He said barley prices have come off by as much as C$35 per tonne over the past month.

“A month ago, there wasn’t much for rain and crops were looking like they would dry up,” said Fleischhauer. Farmers were also reluctant sellers given the uncertain production prospects. While the weather situation has shifted and there are now pockets of too much rain, he said crops were now thought to be doing reasonably well for the most part.

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The harvest is only a few weeks away for the earliest planted fields.

“All of our customers in the feedlot alley are all thinking the same thing – that ‘prices will go down’,” said Fleischhauer. As a result, they are out of the market or bidding low, while farmers are still looking for higher prices.

Timing could be an issue in the northern growing areas, with the slower-than-normal development leaving fields susceptible to frost damage before harvest.

While there is plenty of time for things to change, if the weather cooperates over the next few weeks “there will be quite a bit of feed around,” said Fleischhauer.

Feed barley is currently priced at around C$277 per tonne in southern Alberta, while feed wheat is at C$261, according to PDQ data.

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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