August 20, 2024

Lack of demand pressures feed grain prices to decline in Canada

An ongoing decline in demand has led to a drop in feed grain prices in Canada, according to Darcy Haley, vice-president of AgValue Brokers in Lethbridge, Alberta, Canada, Farmtario reported.

Feed wheat prices, which have remained high for an extended period, are now facing pressure as buyers seeking larger quantities have become scarce. "It's been so expensive for so long," Haley commented, noting the limited number of buyers willing to acquire larger volumes.

"If they can't get any volume, they're not engaging," he added.

Haley noted that recent purchasers of feed wheat have been some feed mills and a few pork producers, with cattle feeders largely absent from the market. Feed wheat prices on August 13 were reported at CAD 265 (US$194.52) to CAD 270 (US$198.19) per tonne delivered to Lethbridge.

"Until there's an offer of significant tonnage, you're not going to see much demand," Haley explained.

Feed barley prices have also declined over the past week, Haley reported, noting that they need to remain CAD 10 (US$7.34) to CAD 15 (US$11.01) per tonne lower than corn to maintain competitiveness. Feed barley for delivery next month was priced at CAD 255 (US$187.18) per tonne, down CAD 10 (US$7.34) from the previous week, while barley for January-February-March delivery was quoted at CAD 275 (US$201.86) per tonne, easing CAD 5 (US$3.67) from last week.

Haley cautioned that the barley market might weaken further in September and maintain lower prices to remain in feed rations.

He attributed this trend to the relative ease of importing corn from the United States, along with projections for a large US corn crop this year, which is expected to result in ample supplies.

-      Farmtario