Feed Grain Weekly: Prices expected to hold firm

WINNIPEG – Feed prices on the Canadian Prairies are likely to remain steady through to the New Year, according to Brandon Motz of CorNine Commodities in Lacombe, Alta.

“I think the markets for now are to be flat,” he said, noting there has been talk in the market of 25 trains of United States corn that have been booked.

“The feedlots are fairly content there is enough grain around them. The farmer doesn’t seem super interested in selling,” Motz added.

One thing affecting prices has been transportation issues. Motz spoke of a driver shortage that began sometime after more corn started coming into Western Canada.

“The traditional north-south, east-west long-haul type of freight was hard to get. It really wasn’t an issue because we had a lot of elevator-direct corn coming in,” he commented. “Short term panic type loads are really hard to get booked right now.”

“We trade freight more than we trade commodities,” he quipped.

Nevertheless, Motz is very happy with the quality and quantity of feed grains that are available.

Since Nov. 16, feed barley on the Prairies has largely held firm, albeit a 13-cent per bushel increase in Saskatchewan. In that province barley stood at C$7.29 to C$8.13/bu. delivered, according to Prairie Ag Hotwire. To the west, it was C$7.33 to C$9.91/bu., while to the east it was C$7.21 to C$8.25/bu.

Saskatchewan also saw feed wheat gain 25 cents/bu. to rise to C$8.50 to C$12.00/bu. In Alberta, prices were C$9.63 to C$12.93/bu. and Manitoba was at C$10 to C$11.50/bu.