CWB feed barley GDC

[Riley]

GDC available until filled (possibly today). Worked out to $4.91/bu (feed) dropped in local pit in our area.

[charliep]

Approximately where are you located? I assume that is a cash price and not a promise/PRO.

Thought I might highlight today's AGC feedlot/feedmill price. $5/bu Edmonton, Red Deer and Calgary. That is up 30 cents/bu from Mar. 3 and 40 to 60 cents from Feb. 25. Even more interesting is the Calgary Edmonton corridor (cheapest rail freight to the coast) is higher than Lethbridge. Maybe markets do work.

Will put up futures as well (May contract). Today about $230 (not closed when I write). May 3 close - $237.70. Feb. 25 close - $228.

http://www.agric.gov.ab.ca/app21/fgrainprices?bushels=0

[charliep]

Landed US corn price into Alberta is likely about $270 to $280/tonne. Decisions being made about where backgrounders will be fed out but if they stay in Alberta, lowest cost energy will be feed barley this spring.

[charliep]

Below is what Mike Jubinville/ProFarmer had to say about this sale. Thanks for letting me use Mike.

Quote: "Again...the CWB states international feed barley prices will be
impacted by a March 5 decision of the government of Saudi Arabia, the
world's biggest importer of feed barley. In order to increase barley
usage and conserve wheat-flour supplies, the Saudi government increased
its import subsidy for barley by a whopping 71 per cent. Saudi
consumers had been using wheat flour and other grains as substitutes
for feed barley, but the government's subsidy increase should restore
the demand for feed barley and increase the price in global markets.

Industry colleagues advise that the CWB has sold 1 cargo (50-
55,000t) around US $310/t fob West Coast. This would make sense because
another source advised that a Panamax-sized load traded in Saudi at US
$440/t. Ocean freight is around US $130/t /-. This probably happened
Thur/Fri.

The point I did not emphasize enough yesterday is that in
conjunction in this boost to the PRO, the CWB is now offering a long-
awaited Guaranteed Delivery Contract (GDC) for feed barley that assures
a delivery call by May 2."