Prairie Feed Grain Prices Defy Seasonal Trends Amid High Corn and Fuel Costs

Feed grain prices on the Prairies have unexpectedly surged higher despite the usual seasonal trend of pulling back. This 'contra-season rally' has left feedlots scrambling to adjust their plans, as they had anticipated buying cheaper feed during harvest season.

According to Jim Beusekom, president of Market Place Commodities in Lethbridge, corn prices on the Chicago Board of Trade have risen above $5 per bushel, contributing to higher feed prices. He also pointed out that transportation costs are increasing due to sharp hikes in fuel prices, particularly diesel at C$2 or more per litre.

Beusekom noted that the usual harvest pressure has not occurred this year, which would typically lower feed grain prices. Instead, as harvest progressed, the market started to rise, leaving end users perplexed.