June 26, 2009

The Canadian Wheat Board has increased its price projections for durum and malt barley sold during the 2009-10 crop year, according to the latest Pool Return Outlooks, or PROs, released Thursday (June 25).

Wheat values were relatively stable on the month, generally ranging from a dollar higher to a dollar lower.

US wheat futures declined over the past month, while international wheat values held reasonably stable, said the CWB. Poor quality North American winter wheat crops, together with smaller spring wheat crops, should limit milling wheat exports from North America in the upcoming crop year, said the CWB. However, the total global wheat supplies are not threatened by the problems in North America.

The CWB increased its PROs for durum by C$1 to C$4 per tonne, citing the fact that the durum growing regions of the US and Canada are extremely dry. The dry conditions have put the development of the North American durum crop about two weeks behind normal, said the CWB.

The CWB increased its malting barley price projections by C$7 per tonne, as international prices have improved over the past month. Concern over malting quality supplies has caused the spread between malt barley and feed barley to widen, said the CWB.

Feed barley prices were left unchanged from May. Production estimates for the US, Canada, Russia, Ukraine, and the European Union have all been reduced due to dryness. However, production prospects in Australia, the Middle East, and Africa are up on the year, said the CWB.

The following are the Canadian Wheat Board's Pool Return Outlooks detailing estimated payments to farmers for grain delivered during the 2009-10 (August-July) crop year, in Canadian dollars per metric ton, basis in store St. Lawrence/Vancouver.