Canada: Tariff uncertainty continues to curtail feed barley demand

Ongoing tariff uncertainty continues to curtail demand in the feed sector across the Canadian Prairies, said broker Evan Peterson of JGL Commodities in Saskatoon.

“No one really knows what to do right now. We’re waiting for this next round of tariffs that might come in place, and we don’t have a lot of clarity on what’s really happening,” Peterson commented.

“It’s wait and see to be honest. Cattle numbers are low in the feedlots right now. Demand (for feed) is the lowest we’ve seen in some time,” he continued.

Peterson said feed barley prices have softened a little lately because of the uncertainty, with bids down C$5 to C$10 per tonne at C$295 to C$300/tonne delivered to Lethbridge. Meanwhile, feed wheat bids are C$5 to C$10 more than barley with almost no activity and there’s been very little U.S. corn being imported into the Prairies.

“The only thing that could make this market a little stronger is weather in the spring and summer, and that’s a ways away,” he stated.

Prairie Ag Hotwire reported Western Canadian feed barley prices were almost unchanged. For the week ended March 12, prices in Saskatchewan held at C$5.25 to C$5.60 per bushel delivered and those in Alberta remained at C$4.90 to C$6.64. There was a five-cent drop in Manitoba at C$4.97/bu.

There was more movement in feed wheat prices, with Alberta down 24 cents at C$6.74 to C$8.71/bu. delivered and a loss of 28 cents in Manitoba at C$5.00 to C$6.67. Those in Saskatchewan were unchanged at C$7.00 to C$7.83/bu.