The Canadian Wheat Board expects to see higher prices for the wheat and durum marketed during the 2010-11 crop year, according to updated Pool Return Outlooks released Dec. 16. Malt barley price expectations were revised slightly lower from the previous month, while feed barley was left unchanged.
PROs for wheat were increased by $3 to $26 per tonne from the previous month, with the higher-protein classes seeing the largest increases. The CWB said the poor harvest weather in Australia was one of the primary factors driving global wheat prices higher over the past month.
At the time of the December PRO, the CWB had priced about 45 per cent of the expected 2010-11 deliveries.
Projected durum prices were raised by $4 to $14 per tonne. With global demand expected to hold relatively steady, Canada’s smaller production will cause stocks to tighten, said the CWB. Limited supplies of high-quality durum were also cited as a supportive price influence.
Feed barley prices were left unchanged. Australia’s poor harvest conditions will likely lead to abundant feed supplies. However, export demand from Saudi Arabia is expected to pick up and the country will require further imports from Canada and Europe.
Malting barley prices were revised lower by $1 per tonne. Expectations for limited malt barley supplies in Australia were supportive overall, but Canada also had a poorer-quality crop and the CWB said there will likely be limited Canadian supplies left to market.