WINNIPEG (CNS Canada) — Spring road bans are causing problems shipping feedgrains to feedlots in Alberta.
“The supply is actually there at the farmgate but getting the supply from the farmgate to the end-user means more truck logistics and higher freight rates typically,” said Jim Beusekom with Market Place Commodities in Lethbridge.
As well, the Easter holiday long weekend caused headaches for shipping due to the short work week.
“Truck logistics get tighter, truck availability is tighter. So, as a result, supply tightens up one out of five days,” Beusekom said.
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As a result, feedgrain prices are on the rise. Feed barley is trading between $244 to $248 per tonne, feed wheat is at $240 to $245 per tonne depending on the quality, and corn from the United States or Manitoba is at $245 to $255 depending on the destination and delivery requirements.
Earlier in the year, feedgrain prices were closer to the $210 per tonne mark, but scarcity of delivery options has pushed the price up. The grain supply is there but it is costing feedlots more to ship it.
The ongoing rail crisis is also affecting feedgrain shipping. Western Canadian producers have been grappling with a grain backlog as the railways have had trouble providing enough rail cars to ship grain to ports. For the Alberta feedlot industry, this is causing problems for importing corn from the U.S. and Manitoba.
“There’s some issues getting enough rail cars, maybe at times too much rail cars. It’s trying to find that balance of getting enough at the right time but not too much of it either,” Beusekom said.
