Prairie feedgrain markets are holding relatively steady for the time being, with end users well covered with corn imports from the US.
“It seems like most buyers have managed to cover themselves well into June with corn,” said Susanne Leclerc, owner of Market Master Ltd. in Edmonton. ”It’s a stagnant market for other grains.”
She said those producers still holding unsold barley or feed wheat were likely hoping to see higher prices, but the corn imports have put a lid on things.
According to the latest data from the USDA, Canada had imported 2.45 million tonnes of US corn as of April 7. That compares with only 337,000 tonnes a year earlier. An additional 1.18 million tonnes of business is outstanding for future delivery, which is well above the 281,800 tonnes of outstanding sales last year.
With all the corn already imported or slated for movement, buyers have little reason to price any additional feedgrains right now, Leclerc said.
Looking ahead, forward pricing for new-crop barley has been solid, although Leclerc noted the same is true for most cropping options in Western Canada. As a result, producers will likely stick with their rotations for the most part with new-crop production dependent on the weather.
While moisture conditions have improved in Manitoba and eastern Saskatchewan, much of Alberta remains very dry and Leclerc said the uncertain weather situation will be followed closely by the feedgrain market going forward.
Logistics are another factor to watch, as they have been a challenge over the past year, Leclerc added. Corn is moving into Alberta by train right now, but high trucking rates and reduced availability of freight for other products continue to cause some issues, she said.
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