MarketsFarm — Falling prices for U.S. corn futures on the Chicago Board of Trade (CBOT) are having little effect on shipments going to Alberta feedlots, according to one grain buyer.
The September corn contract fell to its lowest price since January 2021 when it dropped to US$4.79 per bushel on Wednesday, before closing at US$4.8525/bu. It was the ninth straight negative session for corn and a far cry from its five-month high of US$6.2475/bu., reached June 21.
Mike Fleischhauer of Eagle Commodities Ltd. at Lethbridge said there are no additional corn shipments from the United States due to the sudden price drop.
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“But there are still some more guys buying (corn), as well,” he said. “Prices are definitely cheaper… but most of the guys here have already contracted everything out.”
Wheat and barley conditions in Saskatchewan and Alberta are mostly dry, according to Fleischhauer, adding that there are “pockets” with good moisture. He also mentioned meeting with a farmer who is already cutting down his wheat crop for silage before grasshoppers and heat cause any more damage.
“If you go north, if you go east of Edmonton, it’s dry up there, as well,” Fleischhauer said.
He added that he is shocked to see corn prices going down, considering the current conditions.
“May long weekend is always the tell-tale and everybody was kind of optimistic. There hasn’t been much rain since the long weekend,” he said. “I guess mixed conversations about what’s happening in the U.S. with their corn crops. Some are saying it’s very dry, some are saying they are giving up on their other crops.
“The higher feed prices that we’re seeing today are going to stay consistent right through until 2024.”
The high-delivered bid for feed barley in Alberta on Wednesday was $9.25/bu., up 33 cents over the past month, according to Prairie Ag Hotwire.
In Saskatchewan and Manitoba, the high-delivered bids were both $7.50/bu., representing a 25-cent decline and a 56-cent rise, respectively, since a month ago.
For feed wheat, the high-delivered bid in Alberta was $11.48/bu., up 19 cents from last month. In Saskatchewan, it was $10.25/bu. (up 25 cents), while in Manitoba, the high-delivered bid was $9.49/bu. (up 15 cents).
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
