Canada: 2007-08 barley pool returns continue to strengthen

The CWB released its latest Pool Return Outlook (PRO) for the 2007-08 crop year, in a press release, January 24. Feed barley is up $5 for Pool A and $4 for Pool B, while malting barley is up $3 per tonne from the December PRO.

PRO Commentary

Designated barley

Malt barley prices were steady to slightly higher over the past month. Quality concerns with the Canadian, Australian, and Argentinean malt barley crops have been supportive of higher prices. Fundamentally, the market remains tight, which will be price supportive until the arrival of the European new-crop supplies.

Feed barley

Pool A - Pool A draws to a close on January 31. Limited delivery opportunities and logistical capacity restraints have led to a small pool. Tight global feed barley fundamentals continue to be supportive of high prices.

Pool B - World feed grain prices moved slightly higher over the past month. There is still demand for feed barley from the Middle East that should support prices in the coming months. Russia has implemented a 30-per-cent export tax on barley to reduce exports, while Ukraine has also limited exports. Prices are expected to be pressured in August 2008 by the arrival of new-crop barley in the Black Sea region and the European Union. The world feed-grain complex is expected to remain steady in the nearby time period, with the price of corn providing a price floor for feed barley. Corn prices are expected to remain strong as they rally to attract and retain corn acres in the upcoming year.

25 January, 2008