WINNIPEG (Reuters) – The record-breaking heat wave in parts of the European Union has boosted world feed barley prices, prompting the Canadian Wheat Board to raise its projection for feed barley to $147 per tonne at port.
That was an increase of $22 per tonne for the 2003-04 pool return outlook. The CWB encouraged farmers to consider using a new program that lets them lock in a floor price while delivering early.
The CWB said the hot, dry weather in Europe over the past month has led the European Union to withdraw from the market, providing better export opportunities for other feed barley suppliers, including Canada.
On the other side of the coin, larger-than-average barley crops in some key importing countries are expected to reduce world demand for feed barley, the CWB said.
Although the barley market is strong at the moment, prices could weaken in the second half of the marketing year. The size of the U.S. corn crop and the southern hemisphere feed grain harvest will influence the market in coming months.
