Western Canadian Feed Grains and Canola Market Specialists

Canadian Wheat Board

2004-05 Pool Return Outlook

October 23, 2004

2004-05 CWB PROs for wheat, durum and malting barley mainly higher

Winnipeg -- The CWB today released its monthly Pool Return Outlook (PRO) for the 2004-05 crop year. Milling wheat PROs range from down $3 per tonne to up $14 per tonne compared to the August PRO. Milling durum PROs are up $2 to $17 per tonne. Feed wheat and the lowest grade durum are down $7 per tonne. Feed barley is down $3 per tonne while malting barley values are up $5 per tonne.

September PRO August PRO 2004-05 2004-05 - In store Vancouver or St. Lawrence - Tonne Bushel Tonne Bushel Wheat 1 CWRS 14.5 228.00 6.21 214.00 5.82 1 CWRS 13.5 211.00 5.74 207.00 5.63 1 CWRS 12.5 203.00 5.52 201.00 5.47 1 CWRS 11.5 195.00 5.31 195.00 5.31 2 CWRS 13.5 202.00 5.50 201.00 5.47 2 CWRS 11.5 186.00 5.06 189.00 5.14 3 CWRS 13.0 185.00 5.03 184.00 5.01 3 CWRS 175.00 4.76 175.00 4.76 4 CWRS 133.00 3.62 1 CWHW 13.5 211.00 5.74 207.00 5.63 1 CPSR 173.00 4.71 173.00 4.71 1 CPSW 176.00 4.79 177.00 4.82 1 CWRW 170.00 4.63 171.00 4.65 1 CWES 180.00 4.90 177.00 4.82 1 CWSWS 193.00 5.25 193.00 5.25 CW Feed 122.00 3.32 129.00 3.51 Durum 1 CWAD 14.5 230.00 6.26 213.00 5.80 1 CWAD 13.0 220.00 5.99 206.00 5.61 1 CWAD 12.5 217.00 5.91 204.00 5.55 1 CWAD 11.5 211.00 5.74 200.00 5.44 2 CWAD 13.0 209.00 5.69 200.00 5.44 2 CWAD 11.5 203.00 5.52 195.00 5.31 3 CWAD 13.0 188.00 5.12 182.00 4.95 3 CWAD 184.00 5.01 179.00 4.87 4 CWAD 165.00 4.49 163.00 4.44 5 CWAD 122.00 3.32 129.00 3.51 Feed barley 1 CW 113.00 2.46 116.00 2.53 Designated barley SS CW Two-Row 186.00 4.05 181.00 3.94 Std Sel Two-Row 181.00 3.94 176.00 3.83 SS CW Six-Row 173.00 3.77 168.00 3.66 Std Sel Six-Row 168.00 3.66 163.00 3.55

PRO Commentary 2004-05 crop year Wheat U.S. wheat futures have rebounded significantly since the lows set in mid-August. Harvest progress remains well behind the normal pace across North Dakota, Minnesota and Western Canada. Untimely rains and frost in some areas have reduced exportable supplies of high-grade, high-protein North American spring wheat, supporting milling wheat prices, particularly for the highest quality grades. However, the medium and lower quality segments of the market will continue to be pressured by large crops in Europe, Russia, Ukraine, Argentina and Australia. Durum The durum pool return outlook is up this month. Challenging harvest conditions have reduced supplies of high-grade, high-protein durum in both Canada and the U.S. This has resulted in price expectations that are significantly higher for high quality grades. Feed barley The outlook for global feed barley prices remains under pressure as high ocean freight and aggressive export competition, mainly from the Black Sea region, continue to weigh on world barley values. Poor harvest weather over the past month has increased overall Canadian feed grain supplies but the timing and volume of this year's exports will depend on the relative price levels of the domestic and offshore markets. Designated barley The world malting barley price outlook has improved since last month. Prices in the EU have stabilized, supported by the EU intervention support price as well as by harvest rains in the United Kingdom and Denmark. Poor harvest weather has reduced exportable supplies of malting barley in Western Canada. However, Australia is on track to produce another large barley crop.