MarketsFarm – Feed grains in Western Canada are seeing limited trading during the holiday season, but the demand for feed remains at feedlots.
“The trade has been very slow. We’re kind of just in execution mode right now,” said Evan Peterson, trader for JGL Commodities in Moose Jaw, Sask. “Stocks are tight on the farm, so it’s hard to buy grain right now from farmers.”
Feed wheat is trading at around C$12 per bushel and feed barley at C$9/bu., according to Peterson. Meanwhile, corn, the most widely-used feed grain by feedlots currently, is trading approximately at C$400 to C$410 per tonne (C$10.16 to C$10.41/bu.) delivered locally.
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“Demand has switched to corn. We’re filling gaps with barley when we need it, but all roads are pointing to corn and corn is much cheaper than barley,” he added.
Despite a major cold snap hitting the Prairie provinces, breaking low temperature records in some communities, Peterson said logistics have not been affected by the frigid conditions as many grain deliveries have been by rail.
He also expects little movement in feed grain prices for the next few months.
“(Prices will) just stay steady. I think, if anything, you’re going to see movement get pushed out a little bit,” said Peterson. “I anticipate these prices are going to stay here up until spring, that’s for sure.”
