WINNIPEG (CNS Canada) – Feed grain prices in southern Alberta have been riding a rally since the start of the year, which continued this week.
“Right now (we’re seeing) some of the best prices on barley for farmers that have been seen in Alberta for a while,” said Joshua Boyko, with CorNine Commodities in Lacombe, Alta.
According to Boyko, the price rally has stayed consistent over the last week for feed barley. Between farmers being bullish and locking their bin doors, and relatively full cattle placements at feedlots, demand has been on the rise.
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Feed barley bids in Alberta are currently sitting at C$5 per bushel or slightly above, for on farm pickup.
Factoring into the rally has been an increased uncertainty around rail delivery of corn from the United States and Manitoba. On April 20, a rail strike was temporarily adverted after the federal labour minister ordered employees of Canadian Pacific Railway Ltd. to vote on the company’s final offer. According to Boyko, whether the strike happens or not, it will start to have an impact on the market around mid-May, start of June.
Feed wheat prices have also benefited due to the tight supply. In Alberta, feed wheat is sitting at C$6.25 to C$6.50 per bushel, for on farm pick up.
“With a tight carryout for both on barley and wheat coming into this marketing year, as each commodity’s availability starts to (dwindle), the supplies start to tighten, then you’re going to see a rally in all of the pricing,” Boyko said.
Reports of flooding in southern Alberta aren’t having an effect on the market yet. According to Boyko, it’s still too early to tell how the flooding will impact seeding. Over the last couple of years planting in southern Alberta has been relatively delayed.
“I think if you’re looking at a 10-year average we’re probably not nearly as behind as that average indicates…(in) our area, Lacombe, Ponoka, (people are) still (hopeful to be) getting crops in by the end of May,” he said.
The flooding mostly hasn’t affected feed grain shipping either, Boyko said. There have been a few disruptions where alternative routes had to be used, but Boyko said annual spring road bans have been more disruptive.
