Winnipeg,(MarketsFarm) – Feed barley bids in Western Canada have softened over the past few weeks, but should stabilize as the spring approaches.
“I don’t think there’s a lot of potential to push this thing much higher, and I don’t think the bottom will fall out either. What you see is what you get,” said Matt Froehlich, a trader with JGL Commodities in Moose Jaw, Sask. on the current feed barley market.
End users are relatively full for the time being and may be looking to lower their bids, but Froehlich noted that declining truck freight rates would limit price movement from the farmer’s standpoint.
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July saw below average temperatures, August came in with near to slightly above average temperatures and September built on this warming trend with well above average temperatures for the month.
“Truck freight rates should be loosening up, as fertilizer backhauls start up again,” said Froehlich.
In addition, values usually stay stable through the road ban season, as end users need to pay up to keep product showing up at their door.
Blockades slowing rail movement across Canada may not have a direct influence on domestic feed grains, but Froehlich noted that some grain intended for export may be backing up in the countryside and could move to domestic feed channels instead.
The larger-than-normal amount of grain left to overwinter across the Prairies this year will also be harvested soon.
