MarketsFarm — Prices for feed grains are continuing to go up — and with depleted stocks and dry conditions forecast for the Prairies, they are likely to rise a bit more.
“There’s a shortage of corn. Corn’s at over $400 (per tonne) in southern Alberta. You’ve got barley that’s pushing over $340-$350 and that’s a $50 difference between the two,” said Mike Fleischhauer of Eagle Commodities at Lethbridge, Alta.
“Between the two, we’re starting to see signs that there’s just no inventory left. We’re still a couple of months away from anything new coming in.”
Read Also
U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
According to Prairie Ag Hotwire from Wednesday, high-delivered bids for Alberta feed barley were at $7.58 per bushel, an increase of 61 cents from last month and $2.57 from last year.
As for Alberta feed wheat, high-delivered bids were at $9.25/bu., 68 cents higher than last month and $2.59 higher than the year before.
Adding to pressures on current feed grain stocks, according to Fleischhauer, are international buyers purchasing new crop, ongoing drought and a new 40,000-head feedlot north of Enchant, about 75 km northeast of Lethbridge.
“In the next 30 to 40 days, we’ll see what transpires. In southern Alberta, it’s limping,” he said.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
