September 26, 2008

 

Final CWB 2007/08 price outlooks for wheat mixed; durum up

   

 

The Canadian Wheat Board, or CWB, on Thursday  (September 25) released its final price projections for wheat, durum and barley sold during the 2007/08 crop year that ended July 31.

 

The CWB said wheat values were up C$2 per tonne to down C$3 from the July forecast, with the change dependent on grade and type.

 

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 said. The declining market conditions seen recently had limited impact on the overall results. Many classes of wheat were unchanged from the July PRO, while others saw minor revisions, up or down, reflecting market conditions and sales experience.

 

Milling durum values were up between C$6 to C$12 per tonne from July estimates.

 

Projected pool returns for durum increased for most grades, despite the declines in market prices, the CWB said. Durum sales results for the 2007-08 pool were more favourable than forecast at the time of the July PRO. 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, the CWB said.

 

Designated barley values were up C$4 per tonne while feed barley prices dropped C$3 from the July forecast.

 

The CWB said the designated barley pool showed a small increase over the July PRO largely because of an increase in pool size that allowed the capture of higher prices.

 

A weakening of the feed barley market negatively affected sales returns on the PRO and reduced it from the July level, the CWB said.