Canada: CWB increases barley export target to 1.5 mil tonnes

The CWB has increased its barley export targets to 1.5 million tonnes making the most of a high-quality crop and positive world grain market trends, according to CWB�s Grain Marketing Report December2006/January 2007.

�Although the grain markets have shown considerable price volatility, we expect good market conditions to hold at least until new crop supplies in the northern hemisphere become more certain,� Chief Operating Officer Ward Weisensel said.

For barley, the marketing environment has improved. The U.S. produced the smallest barley crop since 1936, while Australia experienced a severe drought that dramatically reduced its barley crop. �On balance, marketing conditions are promising for both feed and malting barley in the coming season,� Weisensel says.

He cautions that there are factors that must be closely watched, including grain customers responding to high prices by delaying purchases, reducing inventory, looking for less-expensive alternatives and even cutting back on consumption. �Whenever we see a surge in prices, we can expect the market to react,� Weisensel says.

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