With corn and barley prices all-fired up, these are difficult times for the feeding industry. Bottomline . . . China, China, China . . . . China demand is the sparkplug. Southern Alberta feedlot delivered barley prices are now breaking above $250/MT ($5.44/bu) delivered for deferred movement. U.S. corn futures have roared with the December contract surging from $3.20/bu to above $4/bu now.
China appears to have booked Cdn barley at lower levels weeks ago. Those sales must now be covered for export movement. The question now is; will China demand hold into winter? In the meantime, the margin squeeze is on our domestic feeding market.
China appears to have booked Cdn barley at lower levels weeks ago. Those sales must now be covered for export movement. The question now is; will China demand hold into winter? In the meantime, the margin squeeze is on our domestic feeding market.
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