Canada: Malting barley PROs for 2013-14 lower this month

CWB on August 15 updated Pool Return Outlooks (PROs) for 2013-14 Early Delivery and Annual Pools.

Compared to the last PROs released in mid-June, projected malt barley pool returns are C$10 to C$15 per tonne lower, both at C$300/tonne this month.

Malting barley prices have been moving lower on the back of bearish developments offshore and at home. The European winter barley harvest was quite good and the European spring malting barley harvest has been good so far. Australia has received some beneficial rainfall in key barley growing regions, and western Canadian malting barley prospects look much improved compared to last year quality and yield-wise, CWB commented.

PROs are provided as price indications based on current nearby and forward markets. They are calculated basis track west coast or Thunder Bay ports, net of all projected operating costs, including CWB's pool management fee. Volatile market conditions may affect the PROs significantly. PROs are not price guarantees and should not be confused with initial payments. Farmers should consider entering pool contracts as an excellent risk-management tool that provides a solid return from the entire pooling period.

To calculate pool returns backed off to the farm, farmers should factor in country deductions that they negotiate directly with grain handlers. These deductions may vary at different times of the year, CWB said.

16 August, 2013