29 June, 2005

Canada: Barley production is forecast to decrease by 7%

Based on Statistics Canada (STC) estimates, Agriculture and Agri-Food Canada (AAFC) forecasted on June 28 that Canada’s barley production is to decrease by 7% due to lower seeded area and yields. Total supply, however, is projected to increase slightly, due to higher carry-in stocks resulting from the large production of lowquality barley in 2004-05. Exports are expected to increase by 25%, due to higher supplies of malting quality barley and less competition in overseas feed markets.

Carry-out stocks are expected to decrease by 16%. The average off-Board price of feed barley is forecast to be the same as 2004-05. Malting barley prices will be pressured by higher world production, with the CWB PRO for Special Select 2-row down by C$6/t from 2004-05 to C$174/t.

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