MarketsFarm — As prices for feed barley and wheat increase, more feedlots are turning to corn, according to Susanne Leclerc of Market Master Ltd. at Edmonton.
“A lot of places are switching to corn. The desirability of feed barley has been coming down,” she said. “So it will be interesting to see which way the trend goes this week as a lot of buyers are switching to corn because of availability.”
Leclerc clarified that while feed barley is available, corn is easier to source from elevators once it’s brought in. Grain buyers are also having to deal with trucking issues, she added.
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Meanwhile, feed wheat prices continue to be strong as the crop is being used by feedlots in combination with barley and corn.
“We are seeing (feed wheat) stay relatively (steady) to higher,” Leclerc said. “There isn’t much feed wheat. Most feedlots have been using No. 1 wheat this year. There isn’t a lot that’s feed quality… They’re having to use high-quality wheat instead of feed quality.”
As Western Canada gets deeper into winter, demand remained strong for grain at feedlots. Consequently, oats are becoming more popular as a feed grain mainly due to its relatively lower price, according to Leclerc.
“There is a lot of feed oats. A lot of oats in general this year. To see (feedlots) using more oats into feed rations is kind of nice because it opens a lot more availability to be able to move oats,” she said.
Leclerc believes current issues will make feed grain prices volatile over the coming weeks.
“It’s so hard to know if (feed grains will) trade flat,” she said. “Right now, buyers are trying to buy further out, especially with trucking issues and increased freight rates. Prices are increasing in Lethbridge. Freight has been increasing as well…It’s a very weird situation to be seeing again.”
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
