Canada: Canada barley production for 2005-06 is to decrease by 5% from 2004-05

Canada barley production for 2005-2006 is estimated by Statistics Canada to decrease by 5% from 2004-05, as a result of lower area and yields, Agriculture and Agri-Food Canada (AAFC) has posted in its Grain Outlook on December 9. AAFC said that total supply, however, is up by 4% due to high carry-in stocks resulted from the large production of low-quality barley in 2004-05.

The quality of the 2005-06 crop is estimated to be below normal. Exports are forecast to rise by 29% due to higher feed barley exports. Carry-out stocks are expected to drop significantly. The off-Board feed barley price is forecast to decline marginally.

Malting barley prices will be pressured by higher world production, with the CWB PRO
for Special Select 2-Row down by C7/t from 2004-05 to C172/t.

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