CALGARY – American corn is moving into southern Alberta and Manitoba, displacing barley and feed wheat.
That is a complete reversal from last year when heavy weight Alberta barley moved into the high value dairy markets of the U.S. Pacific Northwest.
“It’s amazing how, in one year, you can do a flip flop from the Americans squawking about our feed grains going south. Now nothing is being said about corn coming in here,” said United Grain Growers analyst Greg Kostal.
The American corn harvest produced a record 254 million tonnes with average yields around 134 bushels per acre. Al Dooley of Alberta Agriculture said this huge harvest will pressure Canadian feed grain prices.
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Price is the key
Kostal said the corn is bumping feed wheat out of the market.
“Guys are going to use it. It’s just an issue of price,” he said.
Canadian flax, oats, canola and sometimes wheat goes south and corn is carried on the train’s return trip at a reduced freight rate through Manitoba and west to Alberta.
To move corn from Manitoba to Alberta, costs from $12 to $15 a tonne, said Kostal.
Cost of corn, wheat
Mid-November prices for corn landing in Manitoba was about $117. With the additional freight costs, Albertans pay $132 to $135 a tonne. Feed wheat is about $140 a tonne, according to Kostal’s most recent figures.
Errol Anderson of Palliser Commodities in Calgary, said some corn has moved into southern Alberta at $144 per tonne. The current barley price to Lethbridge feedlots is about $112 per tonne.
Corn is a higher energy feed compared to barley so if the price comes down, it could be attractive to producers, said Anderson.
“We’re probably going to see spurts of corn coming up into the south … all through the winter,” said Anderson.
