January 6, 2011

Canadian Wheat Board boosts projections for grain exports
 

The Canadian Wheat Board (CWB) has revised up its forecast for grain exports and feed prices.

The farmer run organisation said it will try to export 17.4 million tonnes from last year's poor crop - down from the past two years, but up from an earlier forecast published last summer.

Wet conditions during last year cut production of Western Canada's six major grains by 20% to just 42.3 million tonnes. Quality is also significantly lower, the CWB said.

"Grain prices have moved to relatively high levels, which is good news for farmers with grain in their bins," CWB Chief Operating Officer Ward Weisensel said in a statement issued by the organization based in Winnipeg, Manitoba.

"However, the crop also presents a number of marketing challenges, as we work to familiarize customers with the positive intrinsic qualities of the grain produced on the Prairies this year."

The Board said it will try to export 11.8 million tonnes of wheat, four million tonnes of durum and 1.5 million of barley. Most of the bulk barley exports are expected to be made up of feed grade product.

The good news is that farmers with grain can expect good prices through next summer for their wheat and barley.

For livestock producers, that will translate into higher feed costs.

The Board estimates that feed wheat prices in Saskatchewan at US$175.27 a tonne will be 120% higher than last year.