Happy New Year from Agfinity! I always laugh when people tell me how much the flip of the calendar will change everything. Often, it means nothing. Grain markets stay the same, the Oilers still suck and it’s still the middle of winter. Maybe I am just being cynical, but as we look towards grain prices for 2023 we have seen most commodities struggle as we begin this new year. It has been especially interesting watching the feed markets. We have many buyers who have been sourcing corn from the states which has led to the decline in barley prices. There are still several feedlots purchasing barley but with there being a relatively good crop year on barley throughout the majority of Alberta most buyers do not have to look too far to lock in some tonnage. The same goes for feed oats and feed wheat across the board. I think at this point in the year finding good opportunities on feed grains is going to become harder and harder to do. There are still a lot of positives to look towards. Even when barley prices are sitting in between $430-435/mt delivered to Lethbridge I think that that is still a pretty good opportunity for most producers.
I think my favorite part about the new year is that it means we are one step closer to spring. That means seeding, it means the cold weather is almost over and of course hockey playoffs! Speaking of seeding I am curious what most producers are planning on seeding this year. I have heard from many people that seeding Soft White Spring Wheat is a great rotational crop. High yields and lower input costs work well as does with barley and it usually follows the Hard Red spring market and is usually around $0.50-1.00/bu off its price. There also seems to be quite a bit of demand for it across Alberta so it could be a great alternative if you are looking for something new. Anyways happy new year from Agfinity, I hope everyone had a great holiday and that as we look into the new year let’s hope fuel costs come down, fertilizer bills drop, and the grain market spikes!
Because Farming is Forever
Market Report – Erin Harakal
Happy New Year! Just a friendly reminder the USDA Supply and demand report will be coming out this Thursday January 12. As we enter the second week of 2023, there has not been any big changes in the market and things remain flat to start off 2023 for most commodities. Most buyers are starting to look for movement February on but there seems to be a bit of room in January left. Now is the time to look at booking grain in if you are needing movement before road bans as March and road ban season will be here before we know it.
Right now, oats have been what everyone can talk about and there seems to be a lot of supply out there and not much demand. Right now, feed oats and milling quality prices are at similar level. As there has been more homes for feed versus milling and export. Right now, oats FOB central Alberta have ranged from $4.00-4.30/bu picked up. The outlook on oats in the next few months there does not seem to be any big changes coming and prices for the last month have been holding where they are at.
Canola pricing has been like a yo-yo the last few weeks. One days it is up a couple of dollars a metric done and the next day it is down whatever it gained. Oil price and ethanol has been putting pressure on to canola and corn pricing as global commodity pricing continues to deflate. US soybean demand has remained steady and with the lower Canadian dollar it has been able to provide additional support for canola pricing.
Barley has remained flat with prices landing into Lethbridge at $430-435/mt for January-March movement. Corn has put a cap on what barley pricing can do as there seems to be an endless supply of corn available to feedlots. After last year’s low supply of barley and feedlots having to bring in corn it has become a lot easier to bring in corn. And with the cost of trucking, it has made corn a cheaper option. Feedlots have now contracted into May with corn deliveries. Corn delivered to feedlots has been hovering around $440/mt delivered. Feed barley bids into the spring seem to be holding where they are at for now.
Seller Note: Even though it seems like we have time we will be in spring before we know it. It is time to create a plan for your remaining 2022 crop.