CWB raises 2013-14 wheat, canola PROs

CWB has raised its pool return outlooks (PROs) for both canola and wheat in its latest update, released Thursday.

PROs for wheat in the Annual Pool were $16 per tonne higher on Thursday compared to the previous report Sept. 26.

CWB raised wheat PROs because of a recent rally seen in U.S. futures prices, sparked by technical buying and strong export demand for U.S. wheat. Worries about crop prospects in the Black Sea region were also supportive.

Farmers who choose to market their wheat through the Futures Choice Annual Pools can expect to achieve a final return for No. 1 Canada Western red spring (CWRS, 13.5 per cent protein) in store port position made up of the December 2013 futures value they lock in plus C$16 per tonne, the report said.

PROs for canola in the Annual Pool were increased by $10 per tonne from the previous report, due to recent strength in the futures market. Canola prices continued to be pressured by Canada’s record-large crop expectations, but weather concerns in South America were seen as supportive.

Durum PROs were moved $1 higher to $12 lower, as prices for durum exports have been sideways recently. The PRO changes reflect widening protein and grade spreads, as the Canadian crop is generally of lower quality this year.

Projected returns for field peas were unchanged, as prices remain stable and are expected to continue in a sideways pattern, according to the report.

Malting barley PROs were moved down by C$5 per tonne, due to declining cash prices. Pressuring the market are generally good crop prospects in Australia. — Commodity News Service Canada

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