According to CBH, the decline is due to large export surpluses from the Black Sea and Former Soviet Union which continue to flood the Saudi Arabian feed barley market.

A drop in freight rates, as well as the weakening Euro against the US dollar, has seen European grain more competitive in the world market.

Grain Pool's EPR for the 2008/09 No.1 Canola Pool has also come back this week, dropping $25/t to $565-$585/t before oil bonification.

Buyers in the international market have retreated to the sidelines, meaning there is little support to keep prices steady.

CBH says this phenomenon is part of the collateral damage flowing from the credit crisis and the economic downturn in the US financial markets: canola values have come down significantly along with petroleum and other vegetable oils and oilseeds.

All other EPRs for 2008/09 pools remain unchanged.