A move Wednesday by the Saudi Arabian government to raise its import subsidy for feed barley has prompted the Canadian Wheat Board to issue an unusual mid-month pool return outlook (PRO) reflecting higher prices.
The CWB’s mid-March 2007-08 PRO, released Friday, raises No. 1 Canada Western Pool B feed barley to $275 per tonne, up from the February PRO of $252.
“In order to increase barley usage and conserve wheat-flour supplies, the Saudi government increased its import subsidy for barley by 71 per cent,” the CWB wrote in its commentary.
Consumers in Saudi Arabia, well known as the world’s biggest barley importer, “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 board said farmers may want to take advantage of a CWB guaranteed delivery contract (GDC) for feed barley that assures delivery calls by a certain date for contracted tonnage, “given the current opportunities in the marketplace.”
The board’s next full PRO for 2007-08 is due March 27.
