March 10, 2008

CWB raises feed barley price forecast on Saudi demand

A Saudi decision to use more barley to conserve wheat flour supplies has prompted the Canadian Wheat Board to raises its 2007-08 feed barley forecast by CAN$23 a tonne.

The CWB's mid-month Pool Return Outlook Friday (March 7, 2008) was raised to reflect developments in the world barley import market.

The CWB said international feed barley prices were affected by a decision Saudi Arabia made Wednesday.

Saudi Arabia, the world's biggest importer of barley, last week increased its subsidy for barley by 71 percent to encourage barley use.

Saudi consumers had been using wheat flour and other grains as substitutes for feed barley, but the government's subsidy increase should restore the demand for feed barley and increase the price in global markets, the CWB said.