Corn

[Cattleman]

Anyone here much about corn coming North? Even if there is not much here yet, it is certainly going to put a cap on any rally in feed wheat and all feed grains I guess.

Any comments?

[charliep]

Just enough to satisfy the chicken guys and others who need high energy rations.

Delivered feedlot southern Alberta prices (based on 50 car unit train delivery) is about $115/tonne. That is based on CBT March futures at $2/bushel, a 25 cent/bu basis and $8/tonne to transport from rail to feedlot.

Feed barley current prices are $112 to $114/tonne in S. Alberta. Landed feed wheat is $100 to $102/tonne.

[charliep]

Just as an interesting note, Montana feed barley has moved into S. Alberta at about a $4/tonne discount to western Canadian product.

[melvill]

Just talked to a couple of my contacts in the grain trade in S. Alberta. Yes there is US corn coming into the area - regular 25-car shipments - but it is "normal" business for a distillery, for specialty feedmill rations (horses, etc.) and for dairy rations.

There's no corn coming in for feedlots. Two reasons: 1)lots of feed wheat coming in by train from Sask. and Man. at prices that make corn uncompetitive. 2) it takes time for feedlots to switch to corn and nobody seems willing to go through the trouble of making the switch.

The wheat is coming by train even though it is slower that way and requires more paper work that truck transport. One trader I talked to said that bulk grain trucking has been "decimated" by the prairie drought of '02 and '03. He said he has feed wheat bought in the eastern prairies for immediate shipment to the Lethbridge area but he's short about 50 trucks to get it delivered. He's probably going to have to use trains, which he dislikes.

Seems like the availability of low-cost feed wheat will limit the amount of corn that will come in, at least, for feedlots.

[dalek]

Just for interest our local elevators yesterday were paying $87/tonne for dry corn

[charliep]

That is an Ontario price I assume. Just to make sure, what is the moisture content on corn or when you say dry corn, does that mean buyers pay on a dry matter basis?