MarketsFarm — Heavy rains in Alberta and western Saskatchewan over the past week should give grain crops a good start to the growing season — and put some pressure on the feed grain market, which remains at historically high prices after last year’s drought.
The rain “will kick the production can a fairly good ways down the road,” said Brandon Motz, sales manager with CorNine Commodities at Lacombe, Alta.
Aside from the extremely wet areas, most of Western Canada will now have a crop in 2022, he said.
Read Also
U.S. grains: Corn rebounds from contract lows on short covering, bargain buying
Bargain buying and short covering lifted U.S. corn futures on Monday after the market slid to contract lows on expectations for strong U.S. output, traders said.
“We’ll need another rain for sure,” said Motz, “but this rain gets us some kind of a crop and gets everything off to a really good start.”
As a result, feed barley bids have dropped as buyers try to position themselves. Motz noted barley for summer delivery had been trading as high as $465 per tonne but was now in the $440-$445 range.
“There’s not a lot of grain left in the country, but there is some out there,” he said.
Most feedlots are well covered for the time being, with little actual movement in the market as both buyers and sellers wait to get a better handle on new-crop production.
However, Motz said there was some juggling going on, with selling out of corn contracts and buying barley.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
