RATIN

Feed Grain Weekly: Weight issues, low cattle numbers holding prices back

Posted on September, 27, 2024 at 09:56 am


The grain harvest in Saskatchewan is a “mixed bag” so far with the feed market rangebound as participants await new cattle entering feedlots, according to a trader.

Evan Peterson of JGL Commodities in Moose Jaw, Sask., said there are some quality issues as bushel weights are testing light.

“There are a lot of early issues with lightweight barley and wheat. It’s kind of been par for the course this year. There’s been a lot of light barley,” Peterson said.

He added that barley sold at a spot price of C$275 per tonne (C$5.99 per bushel) has been delivered to feedlots. Otherwise, buying activity has been quiet at the start of fall.

“Cattle numbers aren’t looking great right now. A lot of guys are waiting for cattle to come in with the fall run starting,” he said. “Everything is just based on the corn price. Corn is still competitive and it’s going to keep a lid on these commodity prices for as long as it stays where it is.”

Peterson described feed grain prices as “very rangebound”, only rising C$20 to C$25/tonne since their lows in September. However, he added there were also no bearish factors.

“I think we’re in for another month of slow trade. Once these cattle start getting into the feedlots, we’ll see if it picks up demand at all,” he said.

Delivered feed barley prices in Saskatchewan ranged from C$4.25 to C$4.57/bu. as of Sept. 25, with the latter up seven cents from the previous week, according to Prairie Ag Hotwire. In Alberta, delivered prices ranged from C$4.25 to C$6.05/bu., also up seven cents. In Manitoba, delivered feed barley was sold from C$4.00 to C$4.09/bu., down eight cents.

For feed wheat, delivered prices in Saskatchewan ranged from C$5.44 to C$6.75/bu., steady from the week before. In Alberta, prices ranged from C$5.44 to C$7.70/bu., up 14 cents from last week. In Manitoba, there was a reported price of C$6.22/bu., unchanged from the week before.

Source: Grain News