Canada: 2005-06 Pool Return Outlook by CWB is lower for designated barley

The Canadian Wheat Board (CWB) released on February 23 its Pool Return Outlook (PRO) for the 2005-06 crop year. Compared to the January PRO, the Pool A and B feed barley PROs are unchanged, while the designated barley PRO is down C$1 per tonne.

Note: PROs are the CWB's estimate of crop year returns. Farmers who use PROs to make marketing decisions are advised that unusual weather in importing or exporting countries and other changes in market conditions could dramatically affect the price forecasts. PROs are not price guarantees and should not be confused with initial payments. PROs also do not represent CWB offer values for prospective sales transactions nor sales values for actual transactions.

PRO commentary
2005-06 PRO

Feed barley
Pool A - Sales of this pool are essentially complete.

Pool B - While feed barley prices have shown some strength in recent weeks, export competition is limiting price increases. The outlook for global barley production in 2006-07 is also a negative factor influencing the longer-term price outlook.

Designated barley
The global malting barley market remains under pressure, given ample supplies of Australian malting barley. The strengthening Canadian dollar is also having a negative impact on returns.

24 February, 2006