DIVERGENCE
Canadian barley is becoming more competitive with corn
For the Canadian hog industry, and indeed for the entire livestock sector, the good news is that barley prices are coming into a more favorable relationship with corn. If corn and barley prices stay near where they are or corn rises, the more efficient Canadian producers will start to become more cost-effective.
Since May 1 U.S. corn prices have risen 22%, with sport Chicago futures last week above $7.50 a bushel or roughly $275 a tonne Canadian. Winnipeg barley prices have risen 7% over the same time, last week trading at $263. Around the start of May prices were $252 a tonne for barley and $244 for corn. The comparisons are not exact, but demonstrate the trend.
Western barley may be underpriced by some measures, and if so Wheat Board prices for feed barley could be a factor. The Board's latest pool return price for the first half of the 2008-09 crop year is $245 as tonne at Vancouver. The local price is $45 to $55 lower because of elevator and freight deductions. Domestic users have no reason to pay more than the Board does." Thanks Morris...
GRIN { :
The late great CWB discount operation on 'designated area'board grains... to subsidise CDN livestock producers... GEARS UP for 2008!
FROWN } :
Canadian barley is becoming more competitive with corn
For the Canadian hog industry, and indeed for the entire livestock sector, the good news is that barley prices are coming into a more favorable relationship with corn. If corn and barley prices stay near where they are or corn rises, the more efficient Canadian producers will start to become more cost-effective.
Since May 1 U.S. corn prices have risen 22%, with sport Chicago futures last week above $7.50 a bushel or roughly $275 a tonne Canadian. Winnipeg barley prices have risen 7% over the same time, last week trading at $263. Around the start of May prices were $252 a tonne for barley and $244 for corn. The comparisons are not exact, but demonstrate the trend.
Western barley may be underpriced by some measures, and if so Wheat Board prices for feed barley could be a factor. The Board's latest pool return price for the first half of the 2008-09 crop year is $245 as tonne at Vancouver. The local price is $45 to $55 lower because of elevator and freight deductions. Domestic users have no reason to pay more than the Board does." Thanks Morris...
GRIN { :
The late great CWB discount operation on 'designated area'board grains... to subsidise CDN livestock producers... GEARS UP for 2008!
FROWN } :
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