After holding up better and longer than expected, barley and other Prairie feedgrain prices are now starting to soften amid improved growing conditions and a strengthening Canadian dollar.
Prairie drought conditions earlier in the summer had threatened crop yields and buoyed feed grain prices, but the weather premium has subsided thanks to recent rains.
"Rain showed us we'll have a crop," said Allen Pirness of Market Place Commodities in Lethbridge. "That's given some incentive to farmers to sell their old-crop grains."
Old-crop barley prices are now in the C$270/tonne range in Lethbridge, compared to highs of $290 observed a few weeks earlier.
Corn prices have also come down, pressured by the Canadian dollar and better conditions for the American corn crop following an overly wet spring planting season. Corn prices are between $280 and $290/tonne, down from previous highs over $300.
Feed wheat prices have corrected downward as well, following the trend set by barley and corn. A lack of foreign demand for feed wheat has also contributed to softening prices. Feed wheat was in the $280/tonne range but has settled down between C$260 and C$265.
Source: DePutter Publishing Ltd.
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