As we mentioned in our Friday piece about feed grain supplies in Western Canada, feed barley prices pulled back a bit this week by about $5 – $6 CAD per metric tonne.
We know that more and more livestock buyers are getting adequate coverage through the seeding months of April and May as farmer delivery capacity is limited then (smart move!).
Worth noting (and as depicted in the chart below), feed barley is relatively overpriced, compared to where cattle prices are today. Thus, we continue to think that we’re basically in the top 5% of the market. This was suggested in last Sunday’s barley digest email. However, we’re also cognizant of little blips in the market during the seeding months.
On the FarmLead Marketplace this week, we saw trades in around that $240 CAD / metric tonne level for FOB / on-farm pick-up in southern Alberta. Movement is in that said April and May period. Feed barley prices in other areas of Western Canada also backed off with central Alberta values about $20 / tonne below Lethbridge values, NW Saskatchewan about $40 / tonne behind Lethbridge, and eastern Saskatchewan about $45 – $50 a tonne less.
In the news this week, we saw Saudi Arabia back in the market in the market for another one million tonnes! This despite prices climbing in Russia and Australia – two of the main sourcing areas. At the time of writing, it was clear what prices Saudi Arabia was going to pay for the 17 cargos of feed barley, but we do know delivery is for May 13 – June 30.
In the malt barley markets, we’ve been seeing grain buyers get a bit more active as it’s become clear that they want some coverage. $4.50 – $5 CAD / bushel continues to be the range we’re hearing but we’ll dig in a bit more this coming week.
With no sales this past week, for 2017/18 old crop, we sit at 90% sold on feed barley and remain at 40% sold on malt barley. For 2018/19 new crop, we now sit at 20% sold on feed barley and remain at 0% sold on malt barley.
Have a great week!
– Brennan, Garrett, and Adrian
March 23 – Saudi Arabia Looking For Another 1 MMT of Feed Barley
March 23 – Where’s All The Feed Grain in Western Canada?
March 18 – Barley Weekly GrainCents Digest
March 14 – With Slow Rail Movement, How Far Are We From The Top of The Barley Market?
March 12 – Canadian Cattle Herd Not Getting Bigger
March 12 – What Will Feed Barley Prices Do From Here on Out?
March 11 – Barley Weekly GrainCents Digest
March 9 – GrainCents Crop Sales Position Update
March 9 – Better Prices Means Bigger Acres for Australian Barley
March 7 – Aussie Feed Barley Prices Now Bigger Than Malt Barley