December 13, 2006

Global feed grain supplies tighten, demand shifts to barley

Strong demand for feed supplies in many countries has been met by tightening supplies, said the International Grains Council.

Some exporting countries have tightened supplies to safeguard local supplies and limit price rises, worsening uncertainties.

Export prices for feed barley from the European Union recently moved to a level as high as that for milling wheat while US maize futures were the highest in a decade.

Animal feed use of grain is set to decline by about 1 percent in 2006-07, with a sharp fall in the use of high-priced wheat, the council said. 

Feed manufacturers are expected to make more use of barley as well as of maize in the coming 12 months.

Global feed wheat usage is estimated at 94.2 million tonnes, compared with 107.8 million tonnes the previous year. Forecasts are barley and maize are 102.3 million tonnes and 470 million tonnes respectively.