Feedlot Barley Bids Slip

[jcv]

Well Burbert, at least you have the
option of selling your wheat to the CWB,
and getting more value than the rest of
us.

[checking]

Local agent not in the habit of giving bad information suggested delivered barley into Alberta was in the $5 to $5.25 range. If correct, I don't see a change.

There is a word other than "funny", for this, but feed growers scrambling to accept lower and lower bids into Alberta. Yeah, that would really get me hauling.

Is this the same rosy news for Manitoba?

[errolanderson]

The Western Cdn feedlot market is by far
the largest user of our feedgrains.
Domestic feedlot consumption is usually
10X higher than the board export
program. Board's export program was one
of selling to Saudi Arabia for that
country to distribute through the middle
east as camel feed. If it wasn't for our
local livestock market, our barley
market may look like rye of today.

As for the break in prices at the
feedlot level, lack of grower selling in
Nov/Dec was likely due to a delay to
sell into the new tax year. Now that it
is the new tax year, barley offers are
starting to pickup. But it has been an
overall warm winter in Alberta. Cattle
are gaining well and being pushed
forward. This has also reduced the
demand for feed.

But barley prices from a feeders' point
of view are very high. There is no
debating this. Alberta feedlots may not
want to feed wheat, but they are used to
feeding wheat. This has happened in
years past when wheat becomes cheaper to
feed. It is tricky to introduce into
rations, but it's done
Southern Alberta bids are likely to drop
further as feed buyer demand for barley
is weakening. Expect Lethbridge area
48lb bids to potentially test $205/MT
delivered by late Feb.

This is good news for feeders.
Hopefully, agriville is meant for both
grain growers and livestock feeders.

Sk and Mb bids may hold up due to grower
reluctance to price into a weaker
market. But you may see your delivery
times stretched out.

Also, cash corn prices have dropped
significantly stateside. Cash bids are
now around $5.50/bu.

This post is meant to alert growers of
the market dynamics effecting your feed
barley market right now.

PS ICE wheat, durum, barley contracts
begin to trade on Monday. Great news.

Errol

[checking]

Errol.

Neat information. Hope the trend stated is off, otherwise laughing at $5.90 winter wheat picked up shouldn't be a repeatable move.

I also like your easy language that doesn't require a 40 word professional handbook to determine what the hay you just said.

Delivery in time to meet a tax year end has to have the stars line up. I've found with fob it's like pushing a rope. How do you control a trucker's schedule?

[TOM4CWB]

Thanks Errol;

Great to have your added info!

Looking into the crystal ball is always a fun experience... if there is a profit... I am too conservative to keep hanging on...

Cheers!