Lethbridge Barley Losing C$5 to C$10 Per Metric Tonne A Week
Winnipeg, MB, September 24, 2013 (CNS Canada), Sep 24, 2013 (Commodity News Service Canada, Inc. via COMTEX) --
barley prices are continuing to weaken as the on-going harvest
and ideas of above average crop production have been bearish,
Jim Beusekom, grain broker at Market Place Commodities in
Lethbridge, AB, said
"We're still in a downtrend," he said. "Lethbridge barley
is trading in the C$170 to C$180 per metric tonne range today,
so we're losing a good C$5.00 to C$10 dollars per metric tonne a
week. We're not going to zero, so it's going to have to stop one
of these days."
According to Statistics Canada, barley production is
expected to rise 12.4% in 2013 to 8.8 million tonnes.
However, Beusekom said that prices should start to
stabilize in the coming weeks as the Western Canadian harvest
wraps up, but a rally is not expected unless export demand picks
"There's too much feed around, that's the problem," he
said. "In order for the market to rally, there has to be demand
other than the domestic market. We need to see barley exported
to take some of the supply away from livestock feeders,
particularly here in southern Alberta."
Another possible bearish factor that could further affect
barley prices is the beginning of the US corn harvest, Beusekom
"We actually have not had any affect from the US corn
harvest yet, so we're not seeing barley compete against corn or
corn DDG's yet," he said. "If we see corn distillers come back
into Lethbridge and compete against barley, it could go down
However, Beusekom said it would be unlikely to see US corn
up in Alberta unless there is a short supply of feed - and there
isn't this season.
"Corn doesn't normally come here unless there is a short
situation on feed, so I wouldn't expect US corn to price
competitively here," he said. "How are we going to fit in corn
distillers in such a saturated market? We still have wheat
competing for a home in the feed market too, so we've got
barley, wheat, and potentially corn distillers."
Beusekom added that the lowest he could see Lethbridge
prices drop to is the C$150 to C$160 per tonne range.
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