Feed Grain Weekly: Corn affecting barley prices in Lethbridge
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Glacier FarmMedia – Feed barley prices in Alberta are not in sync as less expensive corn imports from the United States enter Lethbridge-area feedlots.
Susanne Leclerc of Market Master Ltd. in Edmonton said there is a wide gap between March prices in Edmonton and Lethbridge due to the amount of corn coming into the southern half of the province. However, the discrepancy is narrowing for April delivery.
“Elevators are paying C$5.70 (per bushel for feed barley) delivered in the Edmonton region, and when you take the feed barley price picked up in the Lethbridge region, it would only be C$5.10, C$5.15 in the March timeframe picked up in the yard,” Leclerc explained.
“It seems like if we look into April, they’re starting to match. So it will be interesting to see if they get closer or not, because there is more corn coming into the Lethbridge area.”
Strong export programs at elevators for feed barley are keeping prices elevated, she added, diminishing the grain’s market advantage over corn. Leclerc also said mild weather and higher prices have resulted in increased grain movement.
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“More people are taking advantage of the markets that are there,” she said.
Other grains are also making their way into feedlots to fulfill their feed ratios.
“We’re seeing some more wheat being picked up by feedlots,” Leclerc said. “We’re seeing more demand for feed pulses like feed peas and fabas. There is still a lot of demand for feed oats.”
Feed grain prices should start to see their perennial spring rallies at around April, she added.
Delivered feed barley prices in Alberta ranged from C$4.90 to C$5.88/bu., down four cents from the previous week, said Prairie Ag Hotwire on Feb. 11. Those in Manitoba were from C$4.60 to C$4.61, down two cents, while a price of C$5.00 was reported in Saskatchewan, unchanged from the week before.
For feed wheat, delivered prices in Alberta ranged from C$6.31 to C$7.59/bu., down three cents from seven days earlier. Manitoba reported a price of C$5.86, while Saskatchewan had a price of C$7.00, with both unchanged.
