August 18, 2008
Feed makers in Canada cashing in on cheap barley
Low prices for feed barley may tempt more feedmakers in Canada to add the grain to feed rations, after it was taken out due to high prices last year, according to the Bismarck Farm & Ranch Guide.
Feed barley prices, after a sharp decline in July, have levelled off as export demand drifted down.
Barley exports were down from their highs last year, leading to weaknesses in prices, grain companies told the newspaper. Production in other countries growing barley is up, thus fuelling supply as compared to last year. Moreover, with increased freight costs, importing countries are buying from those nearer to them, thus making a shift away from the Canadian market. A strengthening dollar also makes Canadian barley less attractive.
The low prices would help feed companies put barley back into their rations; many took it out least year when barley prices topped those of corn. While feed barley prices have fallen, malting barley prices remained stable, creating a widening gap due to a sharper difference between good quality barley and bad ones.
Malting barley cash prices ranged between US$6.00 to US$6.30 per bushel and most locations reported feed barley as between US$2.00 to US$2.50 cheaper than malting barley.