Declining market conditions have had “limited impact” on the Canadian Wheat Board’s final pool return outlook (PRO) for its 2007-08 crop year.
In its September PRO, released Thursday, the board posted wheat prices ranging from an increase of $2 per tonne to a decline of $3, compared to the previous 2007-08 PRO in July.
For example, No. 1 Canada Western Red Winter (CWRW) sits at $329 per tonne, up $2 from July. No. 1 Canada Western Soft White Spring (CWSWS) sits at $337 per tonne, down from $340 in July. The majority of wheat PROs are flat from July.
“The wheat pool was heavily sold at the time of the last PRO in July and actual sales results on the remaining unsold quantities were in line with the July projections,” the CWB wrote. “The declining market conditions we have seen recently had limited impact on overall pool results.”
Milling durum values rose $6 to $12 per tonne in the September PRO, with No. 1 CWAD at $521, up $12 from July, and No. 4 CWAD up $6 at $488. No. 5 CWAD dropped $2 to $302 per tonne.
“Projected pool returns for durum are increasing in most grades, despite the declines we are seeing in market prices,” the CWB wrote. “Although the world durum price structure has dropped significantly, the reductions were slower hitting the market than expected, allowing additional sales to be made at prices that exceeded previous expectations.”
Malting barley values rose $4 per tonne, with SS CW two-row, for example, at $297, up from $293 in July. An increase in pool size “allowed the pool to capture higher prices and boost the overall PRO slightly,” the CWB said.
Feed barley values, meanwhile, dropped $3 per tonne, with No. 1 CW (Pool B) now sitting at $276 per tonne. “A weakening of the overall feed barley market has negatively affected sales returns on the PRO,” the CWB said.