Feed barley bids in the key Lethbridge, Alta. feedlot zone are trending higher, but ample feed wheat supplies should limit the potential upside.
Seasonal issues were behind the firmness, as road bans and the fact that farmers will soon be turning their attention to spring seeding helped underpin barley bids, said Dave Guichon, president of Ag Value Brokers at Lethbridge.
Spot bids of $200 per tonne could be found this week, with some offers coming in as high as $205, he said.
He expected barley to continue to trend higher into the spring, as demand should remain steady through June.
Guichon noted that the late spring this year will see animals kept on feed later than normal.
Feed wheat prices could also influence the demand for barley, as feeders would put more barley back into their rations if wheat becomes too expensive.
The price of feed wheat will also depend on whether the Canadian Wheat Board is able to move forward with a larger feed wheat export program, which will depend on railway logistics.