After watching world grain markets go slightly crazy last month in the wake of the Russian drought and grain export ban, an increase in the Canadian Wheat Board’s pool return outlook was no surprise.The board has released its monthly price forecast for 2010-11 with significant increases for every commodity.Wheat values are up by $33 to $53 a tonne from last month, depending on class, grade and protein level.Durum wheat is up by $4 to $41 per tonne, malting barley is up by $46 a tonne and feed barley has jumped by $66 a tonne.Here is a sample of the new price forecasts (basis export position):* 1 CW red spring 13.5 percent protein $278 a tonne (up from $225).* 1 CW amber durum 14.5 percent protein $248 per tonne ($208).* 1 CW feed barley, Pool A, $209 per tonne ($143).* Select CW two-row malting barley $260 a tonne ($214).”By far the most significant story is the Russian drought situation,” the board said in its commentary, noting that Russia’s wheat production in 2010 is forecast to be 44 million tonnes, down from more than 60 million tonnes a year ago.That is expected to provide sizable sales opportunities for other exporters, especially the United States, thus boosting global prices.Fundamentals in the feed barley market have been affected by the drought not only in Russia by also Ukraine, the world’s number one feed barley exporter. Canada is making feed barley exports for the time in many years.Malt barley prices have been supported by increases in other grains and due to quality issues and concerns in Canada and the European Union.
Increase in latest PRO not surprising
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