Smaller new crop barley supplies partially offset by lower demand

Feed barley prices weakened in sympathy with a corn market that fell sharply through the
last half of July on improved growing conditions and speculative selling.

The October
futures contract traded as high as $280 per metric tonne (MT) before pulling back and
stabilizing in the $240/MT range.

Conditions for cereal yields have generally improved across the Prairies as timely rains
and favorable temperatures have resulted in mostly good growing conditions in July.
Although there are pockets where conditions have not been favorable, these continue to
be compensated for by areas that should see better than average yields.

With only a
month to go before harvest, the likelihood of a weather-induced yield threat has been
greatly reduced.
Despite the expectation of good yields, this year’s barley crop will still be one of the
smallest in recent years due to the lower seeded area. However, lower export sales,
particularly for feed barley, and reduced demand from the livestock sector will partially
offset the positive effects of tight supplies.

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