Canada: Farmer barley selling virtually at zero at present

There was Chinese barley contracting activity reported during the past two weeks, but now Canadian sellers’ ability to trade is extremely difficult, RMI Analytics said in their latest report.

Farmer selling is virtually zero at present, as conditions remain on the dry side. With no widespread rain the past two weeks and a dry forecast, farmer liquidity is expected to remain virtually non-existent until moisture arrives.

Canadian maltsters are not aggressive in trying to buy from unwilling farmers at this time, and brewers appear content to wait things out as well.

For export feed barley, the looming Black Sea crop (and very cheap price indications) make exports from Canada unlikely in the medium term.

Domestic feed barley prices have a made a slight move higher, and the trend remains in an upward direction. Drier conditions are likely to bring cattle in from pasture earlier, increasing feed demand slightly. Feeders have options as US corn is back in play and there is feed barley still out there.