Feed weekly outlook: Drought, demand deplete southern Alberta stocks

MarketsFarm — Prices for feed grains are continuing to go up — and with depleted stocks and dry conditions forecast for the Prairies, they are likely to rise a bit more.

“There’s a shortage of corn. Corn’s at over $400 (per tonne) in southern Alberta. You’ve got barley that’s pushing over $340-$350 and that’s a $50 difference between the two,” said Mike Fleischhauer of Eagle Commodities at Lethbridge, Alta.

“Between the two, we’re starting to see signs that there’s just no inventory left. We’re still a couple of months away from anything new coming in.”

According to Prairie Ag Hotwire from Wednesday, high-delivered bids for Alberta feed barley were at $7.58 per bushel, an increase of 61 cents from last month and $2.57 from last year.

As for Alberta feed wheat, high-delivered bids were at $9.25/bu., 68 cents higher than last month and $2.59 higher than the year before.

Adding to pressures on current feed grain stocks, according to Fleischhauer, are international buyers purchasing new crop, ongoing drought and a new 40,000-head feedlot north of Enchant, about 75 km northeast of Lethbridge.

“In the next 30 to 40 days, we’ll see what transpires. In southern Alberta, it’s limping,” he said.

— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.