Glacier FarmMedia | Marketsfarm —While United States corn futures have hit contract lows, feed barley and feed wheat prices in Western Canada remain competitive.
Jim Beusekom, president of Market Place Commodities in Lethbridge, Alta., said while shipments of U.S. corn were recently priced at C$275 to C$280 per tonne in Lethbridge, feed barley prices ranged from C$265 to C$275, while feed wheat was C$260 to C$270.
However, he added that demand for feed grains is at a seasonal low.
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“Feedlots at this time of the year have less cattle around. As you can see in the countryside, there are a lot of cow-calf (pairs) out there on grass fields and yearlings on grass fields,” Beusekom said. “Once they get placed (in feedlots) in October or November, we’ll see the cattle numbers come up a little later than normal this year.”
Deliveries into feedlots are slowly declining as there is less grain available and less cattle-on-feed.
“We’re waiting for farmers to start harvesting, so we have new supply and we’re waiting for more demand from feedlots, which would take longer,” Beusekom said. “It will take until late fall before (feedlots) are at capacity with cattle, if they do get to capacity.”
He also described crop conditions in southern Alberta to be “average to excellent”, with the exception of rain-soaked pulse crops.
“(Crop conditions) are 180 degrees different from a year ago,” Beusekom said.
However, he added that harvest timing, harvest quality, cattle feeders and export demand will determine feed grain prices over the next few weeks.
Delivered feed barley prices in Alberta ranged from C$4.50 to C$6.42 per bushel on Aug. 6, down 22 cents from a month earlier. In Saskatchewan, prices ranged from C$4.50 to C$4.90/bu. (down 61 cents) and in Manitoba, they were C$4.50 to C$4.92/bu. (down 43 cents).
Delivered feed wheat prices in Alberta were from C$5.44 to C$8.16/bu., down 68 cents from the week before. In Saskatchewan, only C$6.88/bu. was reported (down 68 cents) and in Manitoba, prices ranged from C$6.67 to C$7/bu. (down 26 cents).
