Winnipeg – The feed barley market is holding relatively steady in Alberta early in 2016, but advances are expected in the spring.
“There has been a fair bit of selling (over the past few weeks) but that hasn’t really pressured prices down any further,” said Jared Seitz, of Agfinity in Alberta.
He said the steady tone in the face of increased sales was a supportive price signal, which was being borne out in the improving prices for spring delivery.
He expected to see prices start to increase for March, April and May delivery.
Seitz added that trucking freight rates are more competitive this year, which is making for better pricing across a larger region of Alberta.
Many larger feedlots in southern Alberta had been using 100 percent feed wheat rations, but many are now switching to barley or making plans to do so.
“That will help with barley demand over the next few months,” said Seitz.
However, that doesn’t necessarily mean that feed wheat prices are going down.
Seitz said there was still consistent demand for feed wheat from domestic feeders, while a good export program for Canada Prairie Spring (CPS) wheat was also underpinning the feed side.
The weak Canadian dollar is prevening U.S. corn and DDGS imports, which is supportive for barley and feed wheat demand.
However, even if the currency was on par, Seitz thinks there would not be much corn coming up due to the ample domestic feed supplies.
