Feed Barley What to Do

[rain]

Any advise on how to work the feed barley market this year? Livestock too feed is friendly, we will not be able to handle the amount of corn in Western Canada we have experienced the last two years.

Demand currently is very very low?

[charliep]

I'll throw in the international side of this question.

International feed barley prices have started to slip with current prices close to US $120/tonne versus $140/tonne a month ago. Current prices in Canadian dollars are about $160/tonne (Vancouver) - very close to the CWB PRO. The Aussie barley harvest is just around the corner. Ocean freights have also rocketed higher and this is playing havock with prices.

Bottom line - if you haven't signed up feed barley under the two guaranteed delivery programs, don't sign a CWB feed barley contract. Similarly, feed barley is one crop I might be prepared to store. This does not mean falling asleep at the switch but rather having a set of price targets and the discipline to sell when achieved.

Others thoughts.

[rain]

Domestically bids are tough to come by and basis is getting a little better. Producers with off grade feed barley should probably move it now and be done with it. the good stuff can kepp and can be sold any day.