World Grain - February 2011 - 19

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CWB increases export targets amid challenging crop year
WINNIPEG, MANITOBA, CANADA — The Canadian Wheat Board (CWB) on Jan. 4 increased its 2010-11 export target by almost 2 million tonnes over mid-summer projections, but said it remains challenged by a lower-grade crop resulting from poor weather conditions during the 2010 growing season. In its annual Grain Marketing Report, mailed to farmers across Western Canada, the CWB announced an export target of 17.4 million tonnes, down 1 million tonnes from the last two crop years. The report is available at www.cwb.ca/grainmatters. “Grain prices have moved to relatively high levels, which is good news for farmers with grain in their bins,” CWB Chief Operating Ofﬁcer Ward Weisensel said. “However, the crop also presents a number of marketing challenges, as we work to familiarize customers with the positive intrinsic qualities of the grain produced on the Prairies this year.” This year’s CWB marketing program targets exports of 11.8 million tonnes of wheat, 4 million tonnes of durum and 1.5 million tonnes of bulk barley. Barley exports are expected to consist largely of feed barley, given international prices that have been competitive with domestic feed barley values, as well as very low supplies of selectable malting barley. Extremely wet growing and harvest seasons across most of the Prairies resulted in below-average production and quality for wheat, durum and barley. Production of the six major western Canadian grains was 42.3 million tonnes, down more than 20% from 54.3 million tonnes last year. Spring wheat grades are the lowest since 2004, a stark contrast from the previous four years when excellent crop quality resulted in at least three-quarters of the crop falling into the top two grades. Meanwhile, the quality proﬁles for durum and barley are among the lowest ever seen. Wheat prices in general have been buoyed by a drop in U.S. corn production, which has signiﬁcantly boosted the international feed market. Feed wheat prices for western Canadian farmers have more than doubled from last year, with pooled returns currently projected at C$175.27 per tonne in Saskatchewan — up 120% from 2009-10 payments. Lack of exports from Russia and Ukraine (normally large suppliers of lower-grade grain) has also provided price support, as have production and quality problems in Australia.

Fire damages Arbel Group compound in Mersin, Turkey
MERSIN, TURKEY — Alliance Grain Traders Inc. (AGTI) announced on Dec. 29 that a ﬁre occurred at its Arbel Group compound located in Mersin, Turkey in the early morning hours of Dec. 27. The full cause of the ﬁre and the extent of damage and losses is still under investigation by local authorities and AGTI’s insurer. No one was injured in the ﬁre, and management currently believes that there is no material environmental impact as a result of this incident. Initial reports of the cause indicate that a third-party-operated truck and trailer carrying a delivery of white beans caught ﬁre shortly after arriving at the premises, with the ﬁre quickly spreading to nearby warehouses. Preliminary reports from authorities have deemed the ﬁre accidental. Preliminary assessments show extensive damage to two warehouse buildings and an enclosed loading and receiving area. Inventory stored within the affected and nearby areas consisting of lentils, popcorn, chickpeas, rice, beans and packaging were also destroyed in the ﬁre. It is believed that approximately 7,000 to 10,000 tonnes of pulses and grains inventory were lost or affected by the ﬁre.
www.World-Grain.com / World Grain / February 2011

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World Grain - February 2011

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