MarketsFarm — Feed grain prices remained strong during week ended Thursday, despite welcome rains in central Saskatchewan.
A combination of dry weather in the Prairies and flood conditions in the U.S. Midwest caused feed grain prices to increase earlier in the spring. Though the Prairies have received a bit of moisture over the past week, prices have remained firm.
“We finally have rain, which is helping things back down, but as far as prices go I think they’ll be steady here for a while,” said Evan Peterson, a trader with JGL Commodities.
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Current prices for feed wheat are around $295 per tonne delivered in Lethbridge. Feed barley prices are around the $240 range.
Peterson expected prices to remain steady despite recent rains, but not to go too much higher.
“I don’t think they can move a whole lot higher,” he said.
According to a recent Saskatchewan crop report, topsoil moisture conditions were rated as 37 per cent adequate, compared with only 21 per cent the previous week. Crops rated poor to very poor for topsoil moisture came in at 61 per cent, down from 79 per cent observed earlier in the month.
Though timely rain is a welcome change from a drier-than-normal growing season, the timing of rains will be vital in determining future grain prices.
“I don’t know what this rain will mean for everybody,” said Peterson. “It’s going to depend on if it’s perfect timing or not.”
— Marlo Glass writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.
