Feed Barley

[seldomseen]

What’s up with feed barley? I see lots of decent looking barley fields in this area almost ready to combine yet price is jumping this morning.
Up about .35

[macdon02]

What’s up with feed barley? I see lots of decent looking barley fields in this area almost ready to combine yet price is jumping this morning.
Up about .35

China

[SASKFARMER3]

China thirsty our idiots sell malt quality to them for feed price we’re so smart in canada

[farmaholic]

China thirsty our idiots sell malt quality to them for feed price we’re so smart in canada

Ahem...you mean malt quality is bought from us for feed values and sold to the Chinese for malt quality and price. There is a difference.

[macdon02]

China thirsty our idiots sell malt quality to them for feed price we’re so smart in canada

I don't think it's beer. There's some creative blending going on with the feed rations I expect. They need US soy meal and is only a matter of time. I think they are trying to delay the inevitable. Could be some shift from sorghum going on.

[Agvocate]

There are a couple different issues at play here. First Barley to China the past crop year. 1.789 million tones of barley exports from Canada to the end of June, 1.631 of that to China and balance Japan. As for what they do with it most likely goes to make beer. It will be a spec somewhere between Domestic Malt standards and feed, typically and a price in the middle as well. It's not the primo stuff you will find in a Pilsner but its good enough to make some form of beer there to get the masses all twisted up in China. Either way you can debate the end use of it all you want but it wouldnt trade there if we didnt sell it as producers. Second part is about recent price spike. In the news wires I read that is probably less about shitty beer and more about world feed supplies. Australia has the worst drought in 100 years, EU is burning up, and feed demand is picking up. Feed for thought at the very least.

[malleefarmer]

New crop through elevator system $310 on farm here.

Outside the system direct to enduser are standing aside not offering prices yet but if they were would be around $320 325 on farm

[Oliver88]

Looks like it was smarter to focus on feed barley this year instead of malt barley.

[agboy]

big barley yield in s ab on irrigation 120 bush and better
have to be ! at 2 million / 150 to 160 irrigated pivot land no building!!!!
talk about sugerbeet crop of 35 to 38 ton /acre.
but nothing beets milk quota and chicken quota cost + profit guaranteed
very unfair supply magement system! here in CANADA
every dairy operation can start feedlot tomorrow free enterprice farming !
doin,t need quota paper same for chickenproducer .
driven around south ab see large dairy operation also in feedlot business this is O-K ?????
US farmers have a point !! we take all your beef yes !
but Canada can not take milk or dairy product and chicken from US NO !!!
TRUMP and Europa are saying no quota fair to avery farmer ! it is coming yes !

[errolanderson]

Feedlot barley market is much stronger than we first thought heading into the fall market. Sep to Dec delivered bids into feedlot alley may hover around $250/mt which is $30 higher than our estimates of just a month ahead.

Certainly, dry conditions south of #1 hwy, plus expected China export demand plus a strong flow of U.S. feeders entering Alberta should keep the feed market hot. There will likely be U.S. corn shipped into southern Alberta.

Alberta fat cattle have maintained a sizable premium over the Nebraska cash market. This is encouraging feeding here. Feed prices may surge over malt.

Hope this helps . . . .

[grassfarmer]

....US farmers have a point !! we take all your beef yes !
but Canada can not take milk or dairy product and chicken from US NO !!!

So how do you explain the fact that the US exports more in dairy products to Canada than it imports? According to data supplied by BOTH the Canadian and US governments. The US surplus with Canada was $376 million in 2016.

[GDR]

Certainly, dry conditions south of #1 hwy, plus expected China export demand plus a strong flow of U.S. feeders entering Alberta should keep the feed market hot. There will likely be U.S. corn shipped into southern Alberta.

Alberta fat cattle have maintained a sizable premium over the Nebraska cash market. This is encouraging feeding here. Feed prices may surge over malt.

Hope this helps . . . .

Errol why are us feeders coming here now? Has to be way cheaper to feed in US? And our dollar isn't that great for buying US calves, or is it still us buyers owning the feeders and contract feeding here?And doesn't the us have more slaughter capacity than we do anyhow.

[GDR]

big barley yield in s ab on irrigation 120 bush and better
have to be ! at 2 million / 150 to 160 irrigated pivot land no building!!!!
talk about sugerbeet crop of 35 to 38 ton /acre.

I do think those yields are somewhat normal on irrigated land but was down south last week and thought even the irrigated crops did not look as good as they have other times I've been there. Anyone from irrigation country have any comments on local crops?? Lots of barley coming off as silage down there right now.

[errolanderson]

Errol why are us feeders coming here now? Has to be way cheaper to feed in US? And our dollar isn't that great for buying US calves, or is it still us buyers owning the feeders and contract feeding here?And doesn't the us have more slaughter capacity than we do anyhow.

True, but the Alberta fat cattle basis is at a stiff premium to the U.S. cash. Cheaper U.S. corn is apt to make its way into the Picture Butte market over the next few months. But the dynamics of our feed market heading into fall appears quite bullish.

The Cdn dollar is a factor. We are mildly bullish the loonie, providing our key gov't officials stop tweeting about other countries and pissing them off.

But like all bull markets, barley prices will get too high and then eventually correct lower, but that's down the road aways.

We did not see this hot feed market coming this early in the crop year, but it's coming. . . .