North America: Canadian barley price direction driven largely by feed complex

At the moment, Canada’s barley price direction is being driven to a large extent by the feed complex, RMI Analytics reported earlier in November.

Feed barley is up further and US corn is reportedly being imported again into Alberta’s cattle feeder marketplace. This will keep feed barley well supported as US corn futures are drifting higher.

Grain companies and maltsters are trying to increase coverage levels, but a lack of farmer selling makes this difficult to achieve. Shipments so far this crop year are approaching 1 mln tonnes, which is an above average pace and confirms the expected high level of interest for new crop.

In North America, underlying barley price support comes from US Corn and spring wheat futures. With a smaller Argentina crop there should be greater dependency on Canada to supply Chinese demand, the analysts said.

Trade activity is quiet, with prices up slightly for malting barley.