Exports of durum, barley, rye and soybeans are also forecast to increase while exports of corn, oats, flaxseed and canola are expected to decrease from 1998-99. Oilseed prices are also forecast to decline due to large world supplies and weak demand, with coarse grain prices similar to last year. The major factors to watch are the timing of US marketings of grains and oilseeds which have received LDPs and the aggressiveness of the EU export subsidies. Mt. Domestic consumption is forecast to rise slightly. Feed wheat production is expected to be less than 2 Mt, meaning that lower quality milling grades will be fed.
Domestic use is forecast to decline slightly due to lower feed use.
Domestic feed barley use is forecast to remain unchanged but feed barley exports are expected to increase due to stronger international barley prices. Malting barley supplies in the EU and Australia are expected to decrease from 1998-99. OATS Supplies are slightly lower due to lower production. Canada's share of the US market is expected to fall due to higher production and increased competition from the EU for the high quality southern US import market. Food and industrial use for starch and ethanol production continues to increase while feed use remains unchanged.