Feed Barley Alert

[charliep]

Just a note that both western barley and WCE feed wheat futures contracts have posted nice rallies over the past couple of weeks. At the time of writing, March 2004 western barley is sitting at about $136/t. I pick a winter spot because I don't want to be in forced barley sales off the combine. I would sell futures rather than a DDC to avoid ugly basis levels. At the very least, I would have a market order in for where you would be willing to do business ($138 or $140 or whatever/tonne).

Other thoughts.

[rain]

We bought Western Barley futres a few weeks ago inorder to offset poor basis levles for fall and winter feed barley. We bought 118 Dec Barley and look to exit in the $135.00 region. We will apply this against our poor barley basis levels.

[charliep]

Dec. settled at $137.10 and Mar. at $141/t. Assuming you have a reasonable crop in the offing, have a target price and the discipline to pull the trigger. As a note, new cash prices have not followed futures up. Message - sell futures and wait for basis to narrow.

[charliep]

The recommendation still stands. The barley situation has changed somewhat and may be a little more bullish. Rallies like this need to be rewarded. Selling March futures at $145/t would give most central Alberta farms a sniff at $2.75/bu.