Cheaper corn keeps Canadian feed barley and wheat prices under pressure

Feed barley and wheat prices across Western Canada remain largely stable or slightly lower amid weak demand from livestock operations and declining corn prices. According to Brandon Motz of CorNine Commodities, the Canadian feed grain market is facing competitive pressure from corn, which can be imported relatively easily. Meanwhile, buyers are currently well supplied and are in no hurry to enter into new contracts.

One reason for the low purchasing activity is the later start of the autumn calf marketing season. As a result, feedlots did not need to build substantial feed inventories as early as usual, shifting additional purchasing requirements further into the season. Market participants are waiting to see how the situation develops, keeping demand for feed barley and wheat moderate.

In Lethbridge, Alberta, bids for feed barley delivered in November–December stand at C$280–285/t, while sellers are offering C$290–295/t. Prices for December–January deliveries are approximately C$3/t higher. Feed wheat bids range from C$275 to C$285/t, compared with asking prices of C$290–300/t. Indicative corn prices are C$300–310/t.

According to Prairie Ag Hotwire, feed barley prices in Western Canada were steady to lower during the week ended November 4. In Saskatchewan, prices declined by 6 Canadian cents per bushel to C$4.24–5.15/bushel delivered to elevators. Prices in Alberta remained unchanged at C$5.20–6.53/bushel, while Manitoba quotations held steady at C$4.64–5.15/bushel.

Feed wheat prices also declined across several provinces. The largest drop was recorded in Saskatchewan, where prices fell by 20 Canadian cents per bushel to C$7.95/bushel. In Alberta, quotations decreased by 15 cents to C$6.38–8.57/bushel, while Manitoba prices slipped by 2 cents to C$6.75–6.91/bushel.

Tags: corn, barley, Canada, wheat