Malting Barley Values Down in Mid-Month PRO

Due to uncertainty in malting barley prices as harvest progresses, the Canadian Wheat Board has issued a special mid-month malting barley Pool Return Outlook (PRO) for the 2008-09 crop year.
Projected values are down $15 per tonne from the July 24, 2008 PRO. The
Select CW two-row is projected at $345 per tonne ($7.51/bu), down from $360/$7.84 last month. Select six-row is now $325 per tonne ($7.08) vs. $340/$7.40 last month.
In its commentary, the CWB said significant price volatility continues to characterize the international malting barley market as harvest progresses in the northern hemisphere. Although we still have a long way to go before the 2008 harvest is completed, a large and generally good quality European barley harvest that is underway has weakened prices. European values have dropped by close to $60 per tonne over the past two weeks, the CWB said.

Although recent rains on the spring barley harvest in Europe caused some concerns about quality, the harvest has resumed and damage is not as extensive as in the previous two years. Rains during the past two weeks in Australia have helped stabilize the condition of the barley crop, especially in Western Australia.
The CWB said general barley harvesting is just beginning in the United States and there are some problems with their six row crop which may be supportive of prices. Harvest is still a few weeks away in most areas of Western Canada. As always during harvest, there is uncertainty about where the supply-demand fundamentals will end up.
Given the potential volatility in the malting barley price structure, the CWB said it is issuing a mid-month malting barley PRO to provide a more timely market price signal for farmers during this critical harvest period.

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