Gains in feed barley prices are expected in the spring, even as the market holds mostly steady in Alberta for now.
Jared Seitz of Agfinity in Alberta, said the current steady tone in the feed barley market is a supportive signal, especially in the wake of increased farmer selling. Farther out - into March, April and May - prices should start to improve, he said.
Some of the larger feedlots in southern Alberta have been using 100% feed wheat rations, but many are now switching to barley or making plans to do so.
“That will help with barley demand over the next few months,” Seitz said.
Seitz added that freight rates are more competitive this year, which is making for better pricing across a larger region of Alberta.
But even as some feeders switch over to barley from feed wheat, Seitz said that doesn’t necessarily mean feed wheat prices are going down. There is still consistent demand for feed wheat from domestic feeders, he said, while a good export program for Canada Prairie Spring (CPS) wheat is underpinning the feed side as well.
Meanwhile, the weak Canadian dollar is keeping U.S. corn and DDGs from moving north across the border, which is supportive for barley and feed wheat demand.
However, even if the currency was on par, Seitz said didn’t think there would be much corn coming up from the U.S. due to the ample domestic supplies.
Source: Syngenta