Feedlot Barley Bids Slip

[errolanderson]

Lethbridge-area barley bids are now in
gradual decline. Buyers are now
deferring barley sales and movement as
grower marketings are picking up and
more wheat is entering rations.

Alberta feedlot bids have lost about
$5/MT since mid-Dec and our take is
another $5/MT drop into late winter.

Malt prices are holding up. Buyers
appear to be testing the water to see
what it takes to contract malt barley
for next fall. Solid Asian malt demand
expected in 2012.

Errol

[blackpowder]

My local malster in the $5 area for fall with storage for later months. Claims to roughly follow (70%) Minn.
Would like to lock some in before seeding! Would like to see another half dollar though. I may blink first.
$75/t penalty for non- delivery on every bu. over 20 bpa contracted.

[errolanderson]

There should be solid buyer interest for new crop malt barley ahead. If you are looking for an additional 50 cents/bu, this is not out-of-line in my mind. But the feed barley market may be the one that wavers. Cashflow selling may pressure that feed prices lower at the feedlot level until roadban season.

Errol

[silverback]

How much feed wheat are some of these feedlots going to in these rations? What are they bidding for decent feed wheat?

[errolanderson]

Wheat has been entering rations in central
Alberta. 58lb red bids have been ranging
between $197 to $201/MT delivered. The
high price of barley is triggering some
feed substitution.
AgValue Brokers in Calgary are a good
contact for a rundown of the feedlot
market in central/southern Alberta

[cottonpicken]

Nobody else wants to call bullshit on this whole
thread?

[errolanderson]

Don't shoot the messenger . . . . Cheaper
wheat has been replacing barley in feedlot
rations for the last 6 weeks. Picture
Butte feedlot delivered 48lb barley bids
topped out at $218/MT about mid-December.
This market is now down in a $209 -
$211/MT range.

Errol

[ajl]

High price of barley? With corn in the 7-
8 range, $4.50 barley is low priced. Had
a feed wheat quote at $5.70/bu recently in
S AB. There seems to be a lot of feed
around and there is going to be feed durum
as well since the durum market has
certainly not met expectations. Hoping
for a spring weather market due to dryness
for more sales.

[charliep]

No more $7 to $8/bu corn. CBT corn futures today $6/bu. US corn still higher than domestic feed grain prices. Alberta basis depending on rail car numbers likely in the 75 cent to a dollar over range. Imported corn $7/bu or $280/tonne track.

A market information service ARD uses suggested that $4/bu corn futures could be in the cards next fall. That would mean $5/bu landed Alberta prices or $200/tonne track Southern Alberta. I'm not that negative but continued cheap feed wheat in the world and 2012 corn acreage of 94 mln acres combined with 160 plus corn yields will put more pressure on feed grain prices.

[Burbert]

Stealige, & Tookage by multies, result in
lower, & lower, and lower, Comedian grain
prices. Is anybody suprised buy this turn
of events, itn soo, you've bean in a cave
to long. Benchmarking and transparency
are a bitch! Aren't they?