New Crop Feed Barley

[rain]

We have been booking December 2004 2.95-3.00 FOB bin Calgary region the last few day.

Interestingly we are getting long time malt barley growers to take a little for cash flow.

$3.00 barley is kind of like $8.00 canola. Not abad place to start.

[TOM4CWB]

Rain;

A hedge using the futures may be needed for many to lock in this price... as few people (buyers) are willing to cash price this market right now.

A BSE resolution on the Border would really be a big help about now... we need to get some confidence back into the future of agriculture.

[rain]

Tom we are doing it right now. Too much more movement in the futures anad we will see basis widen.

[rain]

New crop barley bids calgary region have widend out $4.00-$5.00/MT since Friday.

On a least cost basis barley is getting expensive with $175.00 corn.

The big question is how high will corn go, and how high will barley go inorder to get acres back.

[charliep]

Just looking for clarification on your comment about barley and corn in the second sentence. You're not saying Alta. is close to pricing corn into rations? With $3.15 to $3.20/bushel CBT corn, I get a track S. AB. price of about $185/tonne. I checked out the weekly feed prices and barley isn't close to this level.

My biggest problem these days on feed barley is accessing the demand side. Any thoughts on the impact of the federal program ($80/animal for Dec. 31 inventory) on location and intensity of feeding cattle?

[rain]

I have heard new crop corn can be bought $175.00 delivered. Old Crop $175.00 to $183.00.

Even though corn may be close know one will book it. The point is in my mind barley on least cost basis is pushing the upper end of the limit. If corn continues to rises however the limit rises with it.