Glacier FarmMedia | MarketsFarm — A respite from tariffs on U.S. imports has resulted in feedlots purchasing more grain as of late, said a trader.
Evan Peterson of JGL Commodities in Moose Jaw, Sask. added that the reprieve from tariffs has also allowed cattle to move more freely across the Canada/United States border, creating the need for more grain.
“It’s making these guys a little bit comfortable to buy some grain and to put some cattle on the books again too,” he said.
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Seasonal weakness and recent rains across the Prairies pressured feed grain prices according to a Moose Jaw-based trader.
In southern Alberta, bids for feed barley were up to C$315 per tonne delivered, while corn was worth between C$325 to C$330/tonne. With these prices, barley is still the favoured grain at feedlots, according to Peterson.
“They have been all year. It’s kind of the way the market’s been,” he said. “Right now, the push is barley. Some guys are using feed corn but the main one’s barley.”
Grain planting has already begun in much of southern Alberta, but seeding season in Saskatchewan is expected to move into full swing in less than two weeks, Peterson said.
“We’re still cool (in Moose Jaw) and wet. So I think it will be another week to 10 days before guys start getting a little bit more serious about growing in Saskatchewan,” he added.
As growers shift their focus onto the fields, feed grain prices may firm up in the coming weeks.
“I don’t think selling grain is going to really be on their mind,” Peterson said. “If we see beneficial rains come in May and June, they’re going to help give guys confidence in their crops coming off of the fall.”
Bids for feed barley in Alberta ranged from C$5.05 to C$6.75 per bushel on April 16, up 11 cents from the previous week, according to Prairie Ag Hotwire. Those in Saskatchewan were steady at C$5.25 to C$5.30/bu., while Manitoba only reported a bid of C$5.23/bu., up 47 cents from one week earlier.
For feed wheat, bids in Alberta were from C$7.00 to C$8.79/bu., up 22 cents. In Saskatchewan, the range was C$7.00 to C$7.90/bu., eight cents more than the previous week. In Manitoba, feed wheat was worth C$5.00 to C$7.18/bu., up 26 cents.
