Feed Grain Weekly: Demand grows at feedlots, overseas

Glacier FarmMedia — Growing demand for feed grains are leading prices higher, surely but slowly.

Jim Beusekom, president of Market Place Commodities Ltd. in Lethbridge, Alta. said prices are going up due to seasonal demand as more cattle enter feedlots. He also explained that overseas demand for Canadian feed barley is also affecting prices.

“There is a window that exporters have been taking advantage of to ship barley, principally to China,” Beusekom said, adding there is enough barley to fulfill the needs of exporters and feedlots. “There are no supply issues at all.”

He also said barley was selling at C$265/tonne, compared to C$250 in August.

“From 2021 to 2023, we had moved upwards to C$10/tonne per day. Just to put it in perspective, the market isn’t doing a whole lot,” Beusekom explained.

Other grains are also making their way into feed, including feed wheat from Alberta and Manitoba, as well as oats, rye and triticale. Feed grains are also being augmented by an excess supply of corn across the Prairies.

“When you have big crops, you have big crops of everything. It’s not just canola, wheat or pulses. There’s a lot of supply of everything and anything that is lower grade or cleaned out … all that clean-out ends up in feed,” Beusekom said.

He added that if exports continue at their current pace, prices may be higher. However, the market is also following seasonal patterns.

“The seasonals on feed grains are pretty clear. Usually the markets rally through October and November and then decline going into the latter part of winter and even into early spring, and then (they’re) back up again,” Beusekom said.

Delivered bids for feed barley in Saskatchewan were steady over the past month, ranging from C$4.46 to C$4.75 per bushel, said Prairie Ag Hotwire on Nov. 17. In Alberta, prices ranged from C$4.35 to C$5.73/bu., up 13 cents this month. In Manitoba, feed barley was between C$4 to C$4.47/bu., up 15 cents.

For feed wheat, C$6.88/bu. was reported as a price in Saskatchewan, unchanged from the past month. Manitoba also reported a price of C$5.83/bu., up 18 cents. In Alberta, there was a range of C$5.84 to C$7.40/bu., up 15 cents.