Grain Today - September 2019

Good morning,
 
It has been a trying harvest so far. It seems to be following the old saying of what you don’t get harvested in August will have to wait until October. I hope that isn’t correct because there is still a lot of acres to chew through.
 
We are seeing most of the cereals showing up with sprouts. This hasn’t been too big an issue in the feed market but some of our producers are having trouble with rejection at the elevators with sprouts in their wheat. If even 25% of the wheat in the field has sprouts this tells us there is going to be even more feed grain. At one time I thought we had seen the lows on the feed grains but with the harvest dragging and quality suffering we are finding out differently.
 
We have seen feed barley drop from $4.25 in southern Mb, $4.00 in southern SK and $4.50 in southern Ab to new lows. We are trading barley for $3.60 - $3.80 in Mb, $3.50 - $3.70 in SK and $4.00 -$4.25 in AB. These prices are for dry barley with a few sprouts. Tough discounts are $.10/bus/point. This is a big hit with prices as low as they are.
 
We are still seeing good interest in milling quality oats but they need to be dry. Not many buyers of oats have drying capacity to deal with the moisture. $3.10 in western MB to $3.40 in AB. Feed oats are not far behind at this time. As more sprouted and mildewed oats get harvested we will see the spread widen.
 
On that note if you are going to have to sell feed grains because of cash flow or space requirements it likely is a good idea to do it sooner than later. It will take a while and some seller resistance to move these prices off their lows.
 
We still are seeing heated old crop canola showing up. I hope none of you have those issues but if you do we have good demand. Price depends on how heated and location.
 
Something to remember as you are marketing your crops. Just because a feed-mill or grain buyer calls you direct to buy your grain, this doesn’t mean he is offering you what is the highest price available in the market that day. His job is to source grain profitably. Our job is to help you maximize your returns. We don’t charge for helping you check prices, only if the sale is completed through us.
 
Until next time. Have a safe harvest.
 
 
Richard Chambers
Quality Grain Marketing
1-204-729-1354  -Office
1-204-761-8320 - Cell
Richard_qgm@mymts.net
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