MarketsFarm — Alberta feedlots are only buying feed barley and wheat on a hand-to-mouth basis as demand remains unchanged, according to a local trader.
“A lot of the feedlots we work with are buying what they needed and getting covered,” said Agfinity Inc. senior trader Erin Harakal from Stony Plain, Alta.
High-delivered bids are $12.93 per bushel for Alberta feed wheat and $9.91/bu. for Alberta feed barley — up 14 and 11 cents on the week, respectively, but steady for the month, according to Prairie Ag Hotwire data.
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“For feed barley pricing, we haven’t seen past March right now. Basically, for pricing, everyone’s just kind of waiting and seeing. But for Jan/Feb movement, we’ve been seeing anywhere from $420 to $430 (per tonne, or $9.14-$9.36/bu.) delivered for Lethbridge,” Harakal said.
“Feed wheat has been very similar, anywhere from $425 to $435 (per tonne, or $11.56-$11.83/bu.) delivered.”
Corn imports from the U.S. continue to provide much of the grain going to feedlots, as well as some wheat and barley from Saskatchewan and Manitoba, which can cost as much as 15 per cent less than those from Alberta.
Grain in Alberta, however, is staying close to home, according to Harakal.
“We’ve been seeing a trend where a lot of (grain is) staying local. For example, if there’s barley within the Edmonton area, some of it is not going far. It’s not all the time going to Lethbridge, just because Lethbridge is not feeding as much barley as it typically does.”
Prices, she said, “could come off a little bit in the next couple of weeks, but I think it’s hard to say until we see the supply and demand. I think corn should keep itself at the (price) level it is right now.”
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
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