Market Report: October 9, 2024

Hello! Camilla here with Agfinity, I’d like to welcome you to this week’s market report, where I’ll cover the latest insights and trends affecting barley, wheat, oats, canola, and corn markets as we navigate through harvest delays and changing buyer dynamics.

Barley
The Alberta barley market remains steady, with demand for feed barley still high due to the delayed harvest. September’s wet weather pushed back timelines, raising concerns over quality in certain regions. Northern areas are reporting some lightweight barley, while central regions are seeing better yields, although harvest completion remains behind the five-year average. Domestic feed buyers continue to show interest, and competition from the U.S. is increasing, as corn prices remain attractive as a feed alternative.

Barley prices are currently trading between $4.70–$5.00/bu, depending on quality and location. Producers with storage capacity may find better opportunities as winter approaches, especially if delayed rail transport creates logistical challenges.

Wheat
Wheat markets have been relatively quiet, with prices ranging from $6.50–$7.00/bu for CWRS (13.5% protein). The spring wheat harvest is about 90% complete in southern Alberta, though the northern regions still face delays. Quality concerns are rising, as buyers are cautious about moisture levels and protein content, with reports of lower-quality grain increasing.

Globally, wheat prices are under pressure due to large Russian and Ukrainian supplies entering the market. However, concerns about drought in Australia and dry planting conditions for U.S. winter wheat could provide upward price support later in the year. Locking in sales now may be advisable, especially if your wheat is of good quality.

Oats
Oat prices have seen some volatility, currently trading between $3.00 and $3.50/bu. New contracts remain limited as buyers assess quality issues stemming from harvest delays. Alberta’s oat crop has faced challenges, with high moisture levels potentially affecting milling quality. Those holding high-quality oats could see better pricing opportunities later in the year as buyers continue to search for top-grade supplies.

Canola
The canola market has softened, with prices fluctuating around $11.50/bu, largely due to uncertainty in global oilseed markets. While harvest progress has been strong in most parts of the province, excessive moisture in northern Alberta is raising concerns about seed quality. Global vegetable oil markets, particularly palm oil and soy oil, have shown weakness, adding to the market uncertainty.

Despite this, demand from crushers remains strong, and the long-term outlook for canola prices may improve as biodiesel production ramps up. Producers needing bin space might consider forward selling, though keeping an eye on weather developments in other growing regions could reveal better opportunities in the coming months.

Corn
Corn is gaining interest in Alberta, especially among feedlot buyers looking for alternatives to barley. Increased import demand is expected as winter feeding approaches and local barley supplies tighten. For producers with access to corn, this could be an opportune time to explore marketing options, as strong pricing opportunities are likely with consistent demand from feedlots.

Key Takeaways:

• Harvest delays and quality concerns are impacting pricing and buyer behaviour, particularly in the barley and wheat markets.
• Canola prices remain soft, but demand from crushers and biodiesel production could provide future support.
• Corn is increasingly being viewed as a viable feed option as barley supplies tighten.
• Consider locking in sales on high-quality grains as the market adjusts to harvest outcomes and potential logistical challenges this winter.

Stay in touch with us at Agfinity for up-to-date market insights and personalized marketing strategies tailored to your farm. If you have any questions, don’t hesitate to reach out, we’re always here and ready to assist!

Because Farming Is Forever,
Camilla