Exports of durum, barley, canola, flaxseed and soybeans are expected to increase, while exports of spring wheat and oats are forecast to decrease from 1999-00. Imports are forecast to increase due to higher corn imports into eastern Canada related to the significant decrease in corn production in Ontario. Average prices for spring wheat, durum, coarse grains, malting barley, soybeans and flaxseed are expected to rise. Prices for canola are expected to fall. Although EU domestic subsidies remain high, to-date it has not used export subsidies for sales of barley into commercial markets, but it has granted subsidies on oats and recently a small subsidy on wheat.
Domestic use is forecast to remain at an historically high level due to strong feed demand.
Domestic feed use is forecast to increase, because a larger than normal proportion of the crop is expected to be in the lower grades due to sprouting. Domestic feed use is expected to increase from 1999-00, partly due to lower corn use in western Canada. Livestock numbers in western Canada are forecast to increase late in the year. Feed barley exports are expected to increase. Malting barley exports are also expected to rise due to higher demand by China and the US, and reduced competition from the EU where the quality of the crop fell due to wet conditions.