Barley Prices in Western Canada Remain Unattractive for Producers
Cash prices for barley have been steady in Winnipeg, but remain unattractive for producers in Western Canada. Industry sources indicate that cash bids for barley basis Lethbridge are in the $2.30 to $2.50 a bushel range. Market analysts suggest that feedlots in Western Canada have sufficient barley supplies, limiting any potential price hikes. The availability of feed wheat in the region also caps price potential, making it an unappealing option for producers.
Key Takeaways:
- Cash prices for barley have been holding steady in Winnipeg, but remain unattractive for producers in Western Canada.
- Cash bids for barley basis Lethbridge are in the $2.30 to $2.50 a bushel range.
- Feedlots in Western Canada have ownership of good barley supplies, capping any dramatic price hikes.
- The availability of feed wheat in the region limits the upside price potential of the cash barley market.
- End-users may turn to alternatives like US corn, which can be landed in Alberta at approximately C$2.40 a bushel based on current market conditions.
- Producers have been reluctant to deliver barley due to unattractive prices, but eventually, they will have to meet their delivery obligations.
- Industry representatives believe that producers will start to sell their barley supplies, including feed quality barley, as prices become more competitive.
Statistics:
- Cash bids for barley basis Lethbridge are in the $2.30 to $2.50 a bushel range.
- CBOT corn futures settled at just over US$2.06 a bushel on Monday.
- Producers are reluctant to deliver barley due to unattractive prices, with cash barley bids holding up in comparison to corn values.
- Feedlots in Western Canada have ownership of good barley supplies, potentially limiting price hikes to January and possibly into February.
- End-users can land US corn in Alberta at roughly C$2.40 a bushel based on current market conditions.
Sources:
- Resource News International
- COMTEX (http://www.comtexnews.com)