Barley prices in August bucked the usual harvest-pressure trends and were able to maintain some decent strength, especially in feed markets.
As we turn the calendar into September, feed barley prices delivered to Saskatchewan were nearly 4% higher than in July, and nearly 39% higher than at this time a year ago.
In comparison to the 5-year average for August, feed barley prices were 44% higher.
Very honestly, we’re seeing some of the best pricing opportunities for feed barley at harvest time than ever before. Conversely, malt barley prices are generally moving sideways, trading between $5 and $5.15 across the province.
Although we know that there’s likely going to be a bit of a shortage of malt barley in Europe, we haven’t yet seen bids start to improve too much.
Comparably, for perspective, feed barley prices in North Dakota are being bid at anywhere from $2.50 to $2.85 USD per bushel (or $3.26 to $3.72 CAD / bushel). There aren’t a lot of bids out there for malt barley in North Dakota right now (well, at least none that are worth mentioning here because they’re basically the same, if not lower, than the feed barley bids.
For our GrainCents readers, we’re watching a variety of factors that might affect barley prices: 3 are bearish, 3 are bullish, and 4 are noise.
(If you’re not familiar with what “noise” is, then we recommend you check out our GrainCents risk management process towards barley prices.)
This month, GrainCents investigated topics such as:
One thing we obviously need to keep in mind though is that this production estimate from StatsCan doesn’t really account for the heat that hit most of the Canadian Prairies. That in mind, from the August production estimate to the final report in December, StatsCan’s number for barley tends to climb by 8%.