Feed grain prices across the Canadian Prairies moved higher in late August, an unusual development during the harvest season when increased grain availability often weighs on markets. Stronger U.S. wheat futures, concerns about the war in Ukraine and weather-related crop pressures in Europe have helped support both wheat and barley values.
Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, Alta., said prices were looking favourable as Prairie producers moved into a busier stage of harvest.
“The market is moving higher at harvest time, which is fairly rare,” Haley said.
Wheat Futures Rally as Ukraine Concerns Return to the Market
The upward movement accelerated on Aug. 26 as U.S. wheat futures climbed sharply. Haley said Ag Value Brokers handled approximately 8,000 tonnes in sales that day as markets reacted to renewed geopolitical uncertainty.
Ukrainian President Volodymyr Zelenskyy has suggested that Russian President Vladimir Putin is seeking to draft another 300,000 troops for the war in Ukraine. Widespread reports of a possible escalation in the conflict have increased concerns about grain supplies and transportation from the Black Sea region.
U.S. Wheat Markets Post Sharp Gains
Chicago soft wheat reached its daily trading limit, climbing 45 cents US per bushel. Kansas City hard red wheat and Minneapolis spring wheat futures also strengthened, gaining roughly 30 to 40 cents US per bushel.
For Canadian producers, particularly across Alberta, Saskatchewan and Manitoba, movements in U.S. futures can influence domestic pricing and marketing opportunities.
The market has also received support from drought and heat affecting parts of Europe, along with expectations that the U.S. corn crop could be slightly smaller than previously anticipated.
Prairie Feed Barley Prices Increase
Feed barley prices strengthened by approximately C$5 to C$10 per tonne during the week, depending on the delivery period, according to Haley.
September delivery increased by C$5 to C$10 to approximately C$285 per tonne. November and December delivery gained about C$10 to reach C$285 per tonne, while January through March contracts climbed roughly C$10 to C$310 per tonne.
Further into 2027, April through June delivery prices increased by about C$10 to approximately C$325 per tonne.
Storage Could Offer Farmers Better Opportunities
Despite the stronger harvest-time prices, Haley said producers may want to consider holding barley rather than immediately moving supplies into the market.
“If I was a farmer, I wouldn’t be selling my barley right now. I’d put it in the bin,” he said, adding that farmers are not big sellers at this time anyway.
Holding grain carries its own storage and market risks, but the stronger prices available for later delivery indicate that buyers are currently paying a premium for supplies further into the marketing year.
Feed Wheat Prices Also Strengthen
The outlook for feed wheat follows a similar pattern.
Haley said feed wheat was trading at approximately C$295 per tonne for September delivery, with stronger prices available later in the year.
“It’s not until November-December that you get up to that C$310 mark. I’d be holding my feed wheat in that time frame before I’d move anything,” he said.
The roughly C$15-per-tonne difference between September and November-December delivery could give producers with adequate on-farm storage an incentive to delay sales, depending on their cash-flow requirements and expectations for the market.
Global Conditions Could Keep Feed Grain Markets Firm
The late-August rally represents an encouraging development for Prairie grain producers at a time when harvest normally brings additional supplies onto the market and can pressure prices.
Geopolitical uncertainty surrounding Ukraine, weather problems in Europe and concerns about U.S. crop production are providing support to international grain markets. For Canadian farmers, those factors could create stronger marketing opportunities if global supply concerns persist.
While current wheat and barley prices are relatively favourable, the higher values being offered for later delivery suggest the market may still have room to strengthen. For Prairie producers with sufficient storage capacity, the decision between selling at harvest and waiting for potentially better prices will remain an important consideration in the months ahead.
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