Better-than-expected yields and competitive export prices for feed wheat are the reasons behind the Canadian Wheat Board's move to increase its export target for 2010-11.

"The decision was based on the amount of grain that was produced this year. The amount exceeded the original target set back in July, mostly because we managed to get slightly better yields than expected," explains Bruce Burnett, director of weather and market analysis with the CWB. "Although our production is down, we do expect to see a strong year of exports."

"Another factor in this is related to quality. Because we produced a fair amount of lower quality wheat, there had been an expectation that more of that would be used domestically, but with the stronger export values it looks like there will be demand for this. As a result, our export targets were increased," he says.

The target consists of 11.8 million tonnes of wheat, 4 million tonnes of durum and 1.5 million tonnes of bulk barley. It's expected barley exports will be mainly feed barley given competitive international prices for feed, and very low supplies of selectable malting barley.

The Board reports spring wheat grades are the lowest since 2004, while the quality profiles for durum and barley are among the lowest ever seen.

~ Friday, January 7, 2011 ~