bucket
Perhaps it is a situation like compaction and cattle. Someone from the livestock but compaction occurs when an animal is fed something like straw. In cold weather when an animals nutritional requirements are high to keep body temperature up, the animal keeps eating in an attempt to meet its energy needs to stay warm. Not enough stuff goes out the other end of the animal and gradually their stomach fills up so nothing else can come in the front end (read mouth). The animal eventually dies of malnutrition and a plugged stomach.
Kinda like that in feed barley this year. In Alberta (not necessarily other provinces) a big carryover. Actually a good barley crop (again not SK/MB). Need to sell product. AS A GRAIN COMPANY THAT GENERATES PROFITS TO BE DEPOSITED IN THE CONTINGENCY FUND, it took advantage to buy cheap from the domestic market and sell expensive into the export market. Got caught with questions it couldn't answer and switched to the current guaranteed delivery contract with a low cost EPO.
The issue on the low GDC/EPO is only some elevators/grain companies (Viterra in Alberta) and hit and miss at best. The domestic market has responded with higher and as feedlots fill up will do so more later this fall (not much forward coverage by feeders).
The simple point someone asked me is why US corn is $5/bu plus and barley is under $3.75/bu. Perhaps even worst is feed wheat under $4/bu. Couldn't explain it. Can anyone else?
Perhaps it is a situation like compaction and cattle. Someone from the livestock but compaction occurs when an animal is fed something like straw. In cold weather when an animals nutritional requirements are high to keep body temperature up, the animal keeps eating in an attempt to meet its energy needs to stay warm. Not enough stuff goes out the other end of the animal and gradually their stomach fills up so nothing else can come in the front end (read mouth). The animal eventually dies of malnutrition and a plugged stomach.
Kinda like that in feed barley this year. In Alberta (not necessarily other provinces) a big carryover. Actually a good barley crop (again not SK/MB). Need to sell product. AS A GRAIN COMPANY THAT GENERATES PROFITS TO BE DEPOSITED IN THE CONTINGENCY FUND, it took advantage to buy cheap from the domestic market and sell expensive into the export market. Got caught with questions it couldn't answer and switched to the current guaranteed delivery contract with a low cost EPO.
The issue on the low GDC/EPO is only some elevators/grain companies (Viterra in Alberta) and hit and miss at best. The domestic market has responded with higher and as feedlots fill up will do so more later this fall (not much forward coverage by feeders).
The simple point someone asked me is why US corn is $5/bu plus and barley is under $3.75/bu. Perhaps even worst is feed wheat under $4/bu. Couldn't explain it. Can anyone else?
Comment