Feed weekly outlook: Grains pressured by lower demand

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MarketsFarm — Bids for feed grains have backed off previous highs as feedlots in Western Canada are covered into the New Year.

“Now they’re bidding January and forward,” said Allen Pirness of Market Place Commodities in Lethbridge.

Bids for feed barley and feed wheat delivered from January to March were around $220 per tonne, according to Pirness. December spot prices ranged from $225 to $230 per tonne.

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While supply and quality concerns have largely dissipated, logistical challenges have lingered. A shortage of trucks has complicated the supply chain of shipping feed grains from Saskatchewan to Alberta.

Feed grain prices peaked in mid-June, when barley prices were around $290 per tonne in southern Alberta.

Despite dry growing conditions and a challenging harvest, Canadian barley production was around 10 million tonnes for 2019, according to crop production estimates released Friday by Statistics Canada. That was at the top end of trade expectations, and compares with the previous year, when just over eight million tonnes of barley were produced.

“It feels like prices are under pressure,” said Pirness. “We’ll see if the next move is lower or not.”

— Marlo Glass reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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