Winnipeg,(MarketsFarm) – Solid demand from cattle feeders and ongoing logistic issues across the Canadian Prairies should keep a firm undertone in the feed grain market for the time being, according to an Alberta broker.
“The feed market has definitely moved higher,” said Brandon Motz, of CorNine Commodities in Lacombe, Alberta, adding “demand is strong through feedlot alley.”
He noted that pens were full and demand was high. Meanwhile, grain supplies may be plentiful, not necessarily in the key feeding area of southern Alberta.
“We’re going further to get it,” said Motz. With the resulting increase in freight costs, farmers also expect to see better prices.
“In terms of volume available, there no reason for [prices] to go higher,” said Motz, “but in terms of logistics, there probably is a potential for more upside in the market.
Current bids are in the C$228 to C$232 for feed barley delivered into Lethbridge. Feed wheat is priced at roughly C$223 to C$226 per tonne, according to Motz.
Weather conditions have been generally mild for much of the winter so far and have not influenced the feed market to a large extent, colder temperatures and snowfall across much of Western Canada this week may lend some extra support to prices.
“Any time you get a cold weather blast, you run into logistical troubles,” said Motz adding that “we have a lot of winter ahead of us.”