Canada: Barley production to increase by 25% in 2007-2008

Barley production for 2007-08 is forecast by Agriculture and Agri-Food Canada (AAFC) to increase by 25% to 12.0 Mt, close to the 10-year average, due to a larger seeded area, according to Grains and Oilseeds Outlook, August 7. Supply is expected to increase by 5% due to significantly lower carry-in stocks.

Exports are forecast to rise sharply, while domestic use is expected to be marginally higher. Carry-out stocks are projected to decrease by 13%. The average off-Board feed barley price (No. 1 CW I/S Lethbridge) is forecast to remain at a historically high level, but average marginally lower than in 2006-07, as the increased supply and strength of the Canadian dollar is expected to more than offset the support of slightly higher US corn prices.

08 August, 2007