Feed barley exports at strong prices
There are major developments in the feed barley market. Drought in Russia and Ukraine and restricted exports from those major feed barley suppliers has meant a significant increase in offshore prices. Suddenly, the export market can compete with what Canadian producers are receiving for feed barley in the domestic market. Our domestic livestock industry is going to have to pay more or else substitute barley with corn or Distillers Dried Grains from the U.S. The Canadian Wheat Board says it has sold over 200,000 tonnes of export feed barley in recent weeks. Producers can enter into three way Guaranteed Delivery Contracts involving the CWB and a grain company. The CWB has a guaranteed in-store price and a delivery period. Producers negotiate the freight and handling with the grain company. The CWB says the most recent contracts have had a guaranteed price of $215 a tonne basis Vancouver. By my arithmetic, that should equate to prices of well over $3 a bushel in Saskatchewan. The CWB says contract prices have been continually increasing as new tenders are awarded. Producers can call the CWB to find out more or call elevator companies to see if they’re participating in any tenders. I’m Kevin Hursh.