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Lower loonie supports wheat in PROs

The Canadian dollar’s recent weakening has improved the prospects for Prairie wheat growers in the Canadian Wheat Board’s (CWB) latest pool return outlook (PRO).

Current concerns over the quality of the wheat crop in Europe and the Black Sea region offer support against the pressure of continued expectations for record world wheat production, and lend some stability to international wheat prices, the CWB said Thursday.

Milling wheat values in the CWB’s August 2008-09 PRO, released Thursday, are up $10 to $22 per tonne from July levels, with No. 1 Canada Western soft white spring (CWSWS) up $10 at $287 per tonne. No. 1 Canada Western Red Spring (CWRS) 14.5 is up $22 at $370 per tonne. CW feed wheat remains flat at $236 per tonne.

World durum prices are under pressure following the end of the harvest in the Mediterranean basin as well as a relatively large European durum crop that exceeded earlier projections. The weaker loonie offers some support the CWB wrote, but all milling durum PRO values are still down $10 per tonne from July levels.

For example, No. 1 Canada Western amber durum (CWAD) is down $10 at $396 per tonne in the new PRO. No. 5 CWAD also remains flat at $236 per tonne.

Barley

Feed barley prices in North America are still pressured as row-crop values declined; also, the barley harvest is underway in the northern U.S. Plains and complete in Europe and the Black Sea region, pressuring prices. The lower loonie and dry conditions in Australia offset those pressures, the CWB wrote, but feed barley PROs remain down $2 per tonne. No. 1 CW Pool A feed barley dropped $2 to $243 per tonne in the August PRO.

Dry conditions in Australia, quality concerns in northern Europe and the weaker loonie helped support malting barley PROs, which on Thursday were raised $3 per tonne from their levels in a special mid-month PRO released Aug. 7.

Select CW six-row barley now sits at $348 per tonne, while Select CW two-row is up to $328.

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