Feed Cost Commentary
Understanding feed cost trends is critical for managing margins. Each month, we review current market conditions and key drivers influencing ingredient pricing across Western Canada.
April 2026
Feed markets continue to send mixed signals this month, with some easing in energy prices but ongoing pressure in protein and external cost drivers. While global grain supplies remain comfortable, overall ration costs are still being supported by a few key factors producers should keep in mind.
Protein Continues to Drive Risk
Protein remains the biggest concern in the ration. Soybean meal prices have moved higher again, with May futures sitting around $323 USD per short ton on the Chicago Board of Trade. This upward pressure is a primary driver of increasing feed costs.
Any ingredients tied to protein—such as soybean meal and canola meal—deserve close attention. If margins allow, it may be worth considering some level of price coverage before further increases.
Energy Prices Show Stability
Corn prices have softened slightly, currently sitting around $4.44 per bushel, but the market has not seen a significant downward move. Global supply remains relatively strong, which should help limit major price spikes.
At the same time, there is limited downside without a clear bearish trigger. As a result, energy costs are more stable, but not low enough to ignore in ration planning.
Currency Impact Remains Significant
The Canadian dollar continues to play a major role in feed costs. At approximately 0.725 USD, the weaker loonie is increasing the cost of imported ingredients such as corn, soybean meal, and DDGS.
Even when futures markets are relatively steady, currency fluctuations can have a direct impact on what producers ultimately pay. Monitoring exchange rates alongside commodity markets remains important.
Freight and Fuel Adding Pressure
Fuel and freight costs are quietly supporting higher feed prices. Crude oil is holding around $91 per barrel, keeping diesel prices elevated and increasing transportation costs.
These factors add to the delivered cost of feed ingredients and can limit any potential price relief from softer commodity markets.
Canola Market Holding Firm
The canola complex continues to be supported by strong crush demand. While futures have been volatile, solid processing margins are maintaining demand, which is helping to keep canola meal prices firm.
Even if futures pull back, significant decreases in canola meal prices may be limited in the near term.
Market Outlook
The broader outlook suggests a market that is well supplied but not under pressure to move significantly lower. The latest global projections point to ample coarse grain supplies, which should cap major rallies.
However, without a clear trigger—such as a sharp drop in demand or increased producer selling—prices are likely to remain rangebound in the near term.
Key Takeaways
- Protein continues to present the greatest price risk
- Energy markets are stable but not inexpensive
- Currency and freight costs are keeping overall feed prices elevated
- Markets are expected to trade sideways unless weather or demand shifts
This commentary is updated monthly to provide timely insight as market conditions evolve.
