Ag Canada Expects Jump In 2007 Canola/Barley Seeded Area

Ag Canada Expects Jump In 2007 Canola/Barley Seeded Area

In the states now every body is coming up with projections on seeded acres. I think just to have a chance to say "I was right". I mean, I heard 91 million and 87 million and somewhere in between for corn acres in the US. Really it's going to be a lot more than before, we get it. Same with canola in Canada, we know it will be a lot, but how much. The acres in canola will have more of an effect, because it is a smaller market.

Key points:

• Lots of barley. I'm hearing $3.50 for malt barley for a floor price. If the market goes up you get more, but you can't get less than $3.50. So people are going to grow that
• Wheat acres are down. There may be some upside to wheat. CWB may capture more value for quality wheat. Feed wheat may see increased demand because of high feed costs