15 December, 2006

Canada: Barley production – 20% decrease estimated

For 2006-07, the production of barley in Canada is estimated to decrease by 20%, due to lower area and yields, resulting in a 16% decrease in supply, Agriculture and Agri-Food Canada published on December 13.

Exports are forecast to fall by 23%, as higher malting barley exports only partly offset lower feed barley exports. Despite lower exports and domestic use, carry-out stocks are forecast to fall sharply.

The average off-Board feed barley price is projected to rise by C$35/t. The CWB PRO for No. 1 CW feed barley is C$177/t for Pool A and C$175/t for Pool B, up C$47/t and C$44/t, respectively, from 2005-06. The PRO for SS2R malting barley is C$203/t vs. C$171/t for 2005-06, due to lower exportable supplies from major competitors and strong import demand from China and the US.

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