Feed barley prices in southern Alberta have moved higher over the past few weeks and are now trading on par with feed wheat.
After trading at a discount of $10 to $20/tonne to feed wheat since August, barley is now up to around $225 delivered into Lethbridge – similar to the feed wheat price, said Jim Beusekom of Market Place Commodities.
Tight old crop supplies saw spot barley prices top $280/tonne at one point in the summer, before seasonal harvest pressure brought values below $200 at the beginning of October. Farmer selling dried up at the lower levels, but Beusekom said values are back at a level where producers are moving grain again.
While the adverse harvest means there will be more feed wheat in Western Canada, much of it is in Saskatchewan and that wheat still needs to get to Lethbridge. In high-priced feed wheat years, wheat tends to trade at a discount to barley. However, Beusekom said that hasn’t happened yet this year due to the logistics of moving the wheat from the countryside to Lethbridge.
Source: DePutter Publishing Ltd.
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