Winnipeg — Solid demand from cattle feeders and ongoing logistical issues across the Prairies should keep a firm undertone in the feedgrain 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, adding that pens were full and demand is strong.
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 range of $228 to $232 per tonne for feed barley delivered into Lethbridge. Feed wheat is priced at roughly $223 to $226 per tonne, according to Motz.
Weather has been mild for much of the winter so far and has not influenced the feed market to a large extent, but colder temperatures and snowfall across much of Western Canada last week may support 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.”