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Commodity futures

Barley Futures Prices Expected to Remain Stable in Canada

Strategic Insights

— 1 min read

As the Canadian grain industry and traders at the Winnipeg Commodity Exchange (WCE) closely monitor the market, many experts believe that barley futures prices will remain relatively unchanged in the next six months. The current price pattern of around C$115 to C$120 per metric ton is expected to persist, according to industry participants. While some factors, such as the implementation of a duty on US corn entering Canada, could potentially influence price changes, the current supply and demand dynamics suggest that the market will remain stable.

Key Takeaways:

  • Barley futures prices at the WCE are not expected to move significantly from their current levels in the next six months, according to industry participants.
  • The lack of a shortage in feed supplies will likely keep the WCE futures price stable, with a brokerage source stating that "there is no shortage of feeds around which will help to keep the WCE futures price right where it is for now."
  • A potential duty on US corn entering Canada could result in a price hike of at least C$5 to C$10 per metric ton in barley futures.
  • The absence of fresh news on the horizon means that WCE barley futures will continue to trade in its C$115 to C$120 price range.
  • The potential for a smaller carry-out figure than anticipated due to usage during the upcoming winter and possible production problems next spring could lead to higher prices.
  • Industry participants believe that the market needs some fresh news or a significant change in supply and demand dynamics to break the current price range.

Statistics:

  • Barley futures price range: C$115 to C$120 per metric ton.
  • Potential price hike due to duty on US corn: C$5 to C$10 per metric ton.
  • Current supply dynamics: No shortage of feed supplies.

Sources:

  • "The Winnipeg Commodity Exchange" (original source noting industry participants' opinions).
  • Resource News International.
  • A brokerage source.
  • A cash dealer.
  • A brokerage source.
  • Resource News International (copyright 2005).

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