December 10, 2004

2005 May See Rise in Canada's Feed-Wheat Exports

Western Canada is dealing with an over-abundance of feed grains this year. This may lead to an increase in feed wheat exports, as the domestic market can only handle so much, according to Brian Hayward, CEO of Agricore United.

But farmers are reluctant sellers at current prices, limiting available supplies, he added.

While the international market for feed barley is limited, Hayward said there are some opportunities for feed wheat.

"There is a lot of feed wheat out there," said Hayward, adding that the increased supplies should translate to an increased potential for exports.

However, a number of factors may limit any export potential, including the strong Canadian dollar and high ocean freight rates, he said.

Prices at the producer level have deteriorated to help Canada remain competitive on the world market, said Hayward.

He said he thought buyers eventually could be found for the country's large feed wheat supplies. But the key question remains whether farmers will deliver at current prices, he said.

Hayward expected a slowdown in country movement over the winter. He added that if next year's crop looks to be getting off to a reasonably good start in the spring, farmer deliveries likely will pick up as they clear room for the new crop, said Hayward.