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SW Saskatchewan | The CWB (WWW.CWB.CA) has announced tenders for feed barley for export. Seems that there is a foreign demand for feed barley, Saudi racing camels, Bedouins and their horses and in Japan for Kobe beef.
Price is secondary and right now prices are $215/tonne in store Vancouver(roughly$ 4.70/bushel).
Individual grower to negotiate with elevator company for freight, handling and freight etc.
Yesterday Viterra was quoting $2.73 at bin--means they will make nearly $2.00/bushel for handling.
But the competition is heating up- Constantini is offering $2.85 at bin.
All the grain brokers are getting into this business-their bread and butter is sourcing feed for feedlots and by the sound of the export market there isn't going to be a bushel of barley left on the Prairies by January---so all the small brokers had better get their share of this handle or go hungry this winter. Currently the cheapest feed stock for Alberta feedlots is low protein hrw from Montana. Now that may all change with an early frost and we have a million tonnes of frosted durum on the prairies!
Have had indications that more recent foreign prices backed off to Davidson, Sk indicate a farm price of $4.00-$4.50/bushel is possible considering normal handling costs.
Maltsters may run short---they declined to make competitive contracts this spring and Malt acres are waay down and with feed disappearing they will loose their ability to gain supply from the feed supply. Have heard that one malt house is shut down(not confirmed). Guess Badger may have one more chance for $10.00/bushel if Coors hasn't bought it all by now.
And China is returning to rice beer for the masses, their small stocks of malt will only be used for "premium" beer for the upper classes. At least until the Aussi crop hits the market!
The Russian drought has a long tail!
Edited by Redman 8/24/2010 13:19
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Watch the Barley market
