It has been another exciting month in the grain industry with prices being extremely volatile. Prices have been on the move every day. Bids for feed barley as an example have decent carry for further out. Lethbridge delivered bids range from $273 for Dec to $290 for April/June delivery. This isn’t going to be a great year to be feeding any kind of livestock. It is great for grain growers this year. Not very often does growing grain and feeding livestock end up profitable in same year.
We are seeing good demand for feed barley in all locations. In Alberta the picked up price is as strong as it has been. Here in MB and SE SK prices haven’t rebounded to the October highs. Freight has become more expensive as the volume is high. $48-$50 from western MB. We had a nice run on feed wheat mid November. Traded $7.00 picked up in western MB. Prices have backed of from that today it would be closer to $6.50. as you can imagine some producers with under 12.5 protein took advantage of this and traded their #1 and #2 HRS wheat into this bid. Still seeing good demand for wheat in AB as well. E.g. $250 fob at Cereal AB.
The oat market is still staying strong. We have good demand for both milling and feed grade oats. $4.00 is out there for 2 CW milling oats in some locations. Prefer glyphos free. We are seeing more pressure on the glyphos sprayed oats this year than last. I think this is a trend that will continue as we all know “The guy that writes the cheque gets the say”. We do have SO1 Feed oats trading at a premium to regular feed as well.
The pulse market is cooling a bit with red lentils dropping 2-3cents/lb in the last 10 days. Yellow peas still are ticking along just fine with China still in the mix. Speaking of them looks like they cancelled some soybean cargos which is what has kicked the beans in the butt. Any one who has been around grain marketing as long as I have knows that this is their favorite play. Knock the market back then come back in and buy low. I just hope they don’t pull the same thing with barley as they have been aggressive to date.
Just a couple of things to mention that are grain related but not always in front of you.
Yellow pea varieties – we have been getting some negative feedback from some buyers about Amarillo peas- high % cracked seed coat. Just something to think about if you are buying seed this year.
Watch for moisture migration in your yellow pea bins. It sucks when the first load is full of heated moldy peas.
Remember, even if you have what seems like a total wreck with damaged grain. Don’t dump it in the back forty. Everything has some value. As example we just traded 90% heated canola for $300 /MT picked up. This is where Quality Grain can help.
Payment – Since Canada Post seems to feel that COVID is a good excuse for even poorer service we have more and more buyers offering EFT. We have been pushing for this for several years as a service to our producers. It works well and you still get either a hard copy or an email of your unload information anyway.
On the other side of the payment cycle is slow payment. We want to hear if you buyer is not living up to the payment terms for 2 reasons. First - so that we can get you your money as quickly as possible. Second – We want to know if a seller is getting chronically slow paying because this can be a sign of other issues in their company and we need to know to help protect your payment going forward.
We are looking for:
Feed barley, oats and wheat
Flax both brown and yellow
Corn for Jan/March movement.
We have very good demand for heated/ out of condition canola right now.
That’s it for now. Have a good month and stay COVID free.
Marketer – Brandon MB
204-729-1354 – office
204-761-8320 - cell