Go to main site Next > February 22, 2012 Feed Barley: Corn could fuel a surprise   The Alberta average elevator price for Feed Barley continues to trade quietly sideways. In fact Alberta Barley is roughly the same price that it was back in May 2011. In contrast, Corn futures expressed in Canadian dollars are well down from last May’s levels. Is this a risk?   Some might worry that this relative performance difference could make Feed Barley vulnerable. However, on the basis of the historical value ratio, Feed Barley pricing has simply gone from ultra cheap levels to now be a comparative bargain. Moreover, Feed Barley’s current value will allow it to participate in any Corn strength.   Corn futures continue to trade upon support at the CDN$6/bu level and are now testing their third potential downtrend line.  These three downtrends could be a potentially bullish phenomenon known as “fan lines” whereby a break above the last one could trigger a rally up towards the old highs.   This means that Corn deserves close scrutiny and, if it goes, Alberta Feed Barley could be pulled along. Chart analysis and commentary by Harold AGJ Davis