Prairie Feed Grain Prices Defy Seasonal Trends
Feed grain prices on the Canadian Prairies have defied seasonal trends by rising this year, according to Jim Beusekom, president of Market Place Commodities in Lethbridge. This 'contra-season rally' has left feedlots struggling as they had hoped for cheaper feed during harvest season.
The main culprit behind the price hike is the strong performance of the corn market on the Chicago Board of Trade, with futures trading above $5 per bushel. This has pushed up feed barley prices to C$285 to C$290 per tonne delivered in Lethbridge, a significant increase from its August lows of C$250 to C$225.
Another factor contributing to higher transportation costs is the sharp hike in fuel prices, particularly diesel at C$2 or more per litre. This could lead to an additional $10 to $15 per tonne in Lethbridge.