Canada: Feed barley prices increase over last two weeks
Seasonal trends and rising corn prices have underpinned the feed grain market in Western Canada over the past few weeks, although ample supplies will likely limit the upside going forward, Grainews reported on March 14.
Barley trading into the key livestock feeding area around Lethbridge, Alta. has increased by about C$10 per tonne over the past two weeks to hit levels around C$280 per tonne, according to Jim Beusekom of Market Place Commodities in Lethbridge.
He said the gains were “lockstep” with the U.S. corn market, although cautioned that little had changed on the fundamental side.
“Just logistically on the Prairies, moving grain over the next 60 days will become challenging,” said Beusekom, pointing out that muddy conditions and spring road bans limiting grain movement and causing freight costs to rise were contributing to the nearby strength in the market with expectations that farmers will soon be turning their attention to seeding also providing support.
Looking ahead, Statistics Canada recently forecast a 2.5 per cent decline in barley area in 2024, at 7.1 million acres. However, Beusekom didn’t expect the smaller acreage base would provide much support to prices given the expectations for a large carryout from the 2023/24 marketing year. “We’ll be starting with ample supplies, which usually means a fairly stable market depending on what the growing season does.”
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