Canada: 2005-06 barley PROs are C$1 lower, according to CWB

The CWB released on October 27 its Pool Return Outlook (PRO) for the 2005-06 crop year. The Pool A feed barley PRO is C$1 per tonne lower from the September PRO. The malting barley PROs are also C$1 per tonne lower from last month.

Feed barley prices are slightly lower this month, CWB posted. Australia is set to harvest a barley crop that is even larger than last year, which could pressure world prices lower. The Canadian dollar has continued to strengthen, which has negatively impacted feed barley values. Ocean freight rates have increased since early fall and remain a factor to watch.

CWB said that designated barley prices are slightly lower this month. Poor harvest conditions in Western Canada have reduced designated barley supplies below pre-harvest expectations. At the same time, the size of the Australian barley crop has continued to increase due to timely rains. The strength of the Canadian dollar has also pressured values lower.

Note: PROs are the CWB's estimate of crop year returns. Farmers who use PROs to make marketing decisions are advised that unusual weather in importing or exporting countries and other changes in market conditions could dramatically affect the price forecasts. PROs are not price guarantees and should not be confused with initial payments. PROs also do not represent CWB offer values for prospective sales transactions nor sales values for actual transactions.