CNS Canada –– Global durum values are moving lower as producers in Europe and the U.S. start selling — and leaving Canada out of the market, one analyst says.
“The only one that’s not selling aggressively is Canada, and we’re losing market share, big time,” said Jerry Klassen, manager of the Canadian office for Swiss-based GAP SA Grains and Produits.
European farmers are about 50 to 60 per cent finished harvesting durum, Klassen said, which is putting a damper on prices, as the region’s producers offer lower values.
“The French farmer is selling, the Italian farmer is selling,” he said. “We’re seeing a lot more durum come on the market from Europe.”
Despite heavy rains in France, crop quality is better than expected, Klassen said.
Cool, rainy weather delayed maturity during the growing season, which caused harvest to occur later than normal.
U.S. producers are also putting forward aggressive offers as the market gets a better handle on the size of North American crops, Klassen said.
“I think we’ve had some very good rains, there are still some quality concerns about the upcoming crop, but I think people are very comfortable with the yield potential,” he said.
Canadian elevator bids have dropped, but export offers haven’t changed much, with only minimal bids emerging from the country, Klassen said.
“There’s business going on in the market, and Canada’s not getting the business.”
Delivered elevator durum is between $6.59 and $7.35 per bushel in Western Canada, while new-crop prices are about $6.57 to $7.20, according to data from Prairie Ag Hotwire.
— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.