13 October, 2006

Canada: Barley production has fallen by 20%, exports expected to decrease by 28%

According to Agriculture and Agri-Food Canada’ Grains and Oilseeds outlook of October 12, barley production in Canada has fallen by 20%, due to lower area and yields, with supply down by 16%. Exports are forecast to fall by 28%, with higher malting barley exports only partly offsetting lower exports of feed barley.

Despite lower exports and domestic use, ending stocks are forecast to fall sharply. The average off-Board feed barley price is projected to rise by $20/t. The CWB PRO for No. 1 CW feed barley for Pool A is $142/t, vs. $131/t for 2005-06 Pool B. The PRO for SS2R malting barley is $189/t vs. $171/t for 2005-06, due to lower exportable supplies from major competitors and strong import demand from the US.

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