“Continued strength” in the offshore barley market has led to a $15 per tonne bump in the Canadian Wheat Board’s pool return outlook (PRO) for new-crop feed barley.
The CWB on Friday posted a mid-month PRO for 2010-11 feed barley (Pool A), raising its outlook to $224 per tonne ($4.88 per bushel), up from $209 in August.
International barley values continue strong despite “limited demand” from major importers, the CWB said in its outlook.
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The Russian government’s stated plans to extend its grain export ban beyond the end of this year, on top of current government restrictions on exports from Ukraine, have also provided support.
European values “remain supported by a strong internal feed market,” the CWB noted, and while expectations for Australia’s harvest are “largely positive,” the full impact of that country’s harvest won’t be clear until December.
“Timing and quantity of barley demand by the major importing countries before the arrival of the Australian harvest will be critical in determining future price movements in the international market over the next few months,” the board wrote in its outlook.
As sales are made from the CWB’s feed barley pool, grain is to be sourced mainly through “company-specific” guaranteed delivery contracts with a 100 per cent early payment option, the CWB said.
The CWB’s next 2010-11 PRO is due out Sept. 23.
