Feed Grain Weekly: Buyers holding off from making purchases

Glacier FarmMedia | MarketsFarm — Weak demand continues to hamper costs for feed barley and wheat, mentioned Darcy Haley, vice-president of Ag Worth Brokers in Lethbridge.

“It’s not due to an overabundance of grain being supplied to the market. There’s simply not a number of cattle on feed,” Haley mentioned.

“Alternative cattle are virtually unattainable to supply,” he added, noting that these obtainable are costly.

Haley positioned feed barley for July-August at C$290 per tonne, whereas that for September to December is priced at C$280, with January-March again at C$290.

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During the last two weeks, these feed barley costs have misplaced about C$10/tonne, Haley mentioned.

As for feed wheat, he positioned them at C$285/tonne for September to December. Nevertheless, he tried to promote it at C$280 on July 23 and couldn’t get a purchaser.

“The bid and the supply are consistently between $5 to $10 aside, and the client is simply not shifting,” Haley mentioned, noting patrons usually are not involved about greater costs.

“The (purchaser) is saying, ‘till I do know what I’m going to have for cattle, I actually can’t be doing that a lot,’” Haley defined.

On prime of alternative cattle being scarce, Haley mentioned greener pastures this summer time will imply producers will preserve their cattle on them longer than they’ve during the last a number of years.

“Demand (for feed) in my view, doesn’t begin to present its head till mid to late October,” he mentioned.