Feed weekly outlook: Grain bids quietly drift lower
Oats still making their way into feedlots
| 2 min read
This is the first time POGA has had co-presidents. Photo: Greg Berg
MarketsFarm — Prices for feed barley and wheat in Western Canada drifted lower during the week ended Wednesday.
Erin Harakal, trade manager for Agfinity Inc. at Stony Plain, Alta., said a relatively milder winter across the Prairies has resulted in less consumption of feed grains in feedlots. In turn, feedlots are not purchasing as much as in previous years.
“I think another reason is there are so many other grains out there for feedlots that they could be feeding besides feed barley,” she said. “Quite a few have corn contracts up to May. There is quite a bit of oats out there, as well. They’re mixing up the grains that they’re feeding right now.”
Harakal added that shipments of corn have put a cap on how high feed barley prices can go. Delivered bids for feed barley in Lethbridge, Alta. ranged from $415 to $420 per tonne ($9.04-$9.14 per bushel) for February and March movement. The range expands for April and May movement at $415-$425/tonne ($9.04-$9.25/bu.).
Oats have made their way into feedlots because of their relative affordability, due to a large number of producers in central Alberta and less milling demand, she said. Bids in the region range from $3.50 to $3.90/bu.
Bids for feed barley have gone down $5 per tonne over the past two weeks, according to Harakal, and she expects prices to come down even further.
“I think in the next couple of weeks, we’ll either see (the price) stay around where it’s at or we’ll see it soften a little bit more as we get closer to (spring).”
The high-delivered bid for feed barley in Alberta as of Wednesday was $9.36/bu., down 22 cents from the week and year before, according to Prairie Ag Hotwire. In Saskatchewan, the high-delivered bid was $7.75/bu., down 25 cents from last month and 83 cents from last year. In Manitoba, the high-delivered bid was $7.25/bu., 29 cents lower than last month and $2.23 lower than last year.
For feed wheat, the high-delivered bid in Alberta was $11.97/bu., 33 cents lower than last month and 41 cents lower than one year before. In Saskatchewan, the high-delivered bid was $11/bu., 25 cents down from mid-January and steady from one year ago. In Manitoba, the high-delivered bid was $10.75/bu., steady from last year but 12 cents lower than one month ago.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
