Prairie Feedgrain Market Volatile

Prairie feedgrain markets are volatile amid tight domestic supplies and the difficulties importing corn from the US.

Domestic barley prices are seeing wide swings depending on localized coverage needs, said Susanne Leclerc of MarketMaster Ltd. in Alberta, adding demand is very hand-to-mouth in the current environment.

"The fluctuations are more erratic than they've ever been in the past - but we're seeing that in all the markets," she said.

Reports this week said Prairie cattle feeders were close to running out of feed in the wake of frigid conditions that at times have slowed train deliveries of American corn. Vaccine mandates for cross-border truckers have apparently also crimped the northward flow of American corn. Meanwhile, last summer’s devastating Prairie drought means domestic feedgrain supplies are much tighter than usual, leaving feeders scrambling.

But while there is volatility, Leclerc said barley and feed wheat bids are generally looking a little softer, which she saw as a sign that end users may not be as short of feed as thought. In comparison to most years, supplies are down, but it is still difficult to know how much barley there is relative to need, she said.

"There are so many factors at play that make it hard to know what the truth is," she added. "I don't know what to make of this situation."