Fall has arrived and focus has shifted to winter feed supplies. Feed prices have dropped significantly from their June highs, but unfavorable weather conditions have left the question of available supplies. Hay prices vary significantly with prices in some areas with short supplies nearly double those in areas with adequate supplies. On the other hand, there could be numerous options for alternate winter feeds this year as some crops originally intended for grain are being harvested as livestock feed. Harvest delays and the likelihood of frost damage has led to quality downgrades. Alberta feed barley prices have dropped 13% from the June peak at $205/ton to $179/ton in September, and market analysts project that the feed grain markets have not hit bottom yet.
In eastern Canada, last year’s fall and winter conditions caused significant winter kill on the winter wheat and hay crops, while spring planting was delayed due to excessive moisture. According to local market reports, the fears of supply shortage have sent Ontario wheat straw prices to $0.06-0.10/lb in some areas compared to the historical range of $0.03-0.04/lb. Cool, wet weather in August and September are also causing harvest delays in the east, with the possibility of more cereal crops going to the feed market.
