CWB lowers old-crop PRO in cereals

CWB has lowered Pool Return Outlooks (PROs) for wheat in its Harvest and Winter pools, according to an updated report released on March 15.

Durum and barley PROs in the Harvest and Winter pools were also lowered, while canola values in both pools were unchanged to higher.

Wheat PROs in the Harvest and Winter pools were lowered by $25 and $30 per tonne. Durum was lowered by $5 to $15 per tonne in each pool, respectively.

Canola PROs in the Harvest Pool were upped by $30 per tonne, while the Winter Pool remained unchanged.

CWB lowered wheat PROs because “market sentiment has turned considerably more negative over the past month,” said the report. Much of the weakness in the market is linked to improving soil moisture conditions in the U.S., and favourable crop prospects in Europe and the Black Sea region.

CWB also noted in the report that they lowered PROs as wheat prices are running out of time to rally higher on old-crop tight supply news, with spring planting just around the corner.

CWB also released updated prices for its Futures Choice Winter Pool. “Given current PRO assumptions, farmers in the Futures Choice Winter Pool can expect to achieve a final return for 1 CWRS 13.5 in-store port position made up of the futures value they lock in plus $15 per tonne,” the report said.

Durum market fundamentals have been turning weaker, with global crop conditions improving since early January, which is why those PROs were lowered. Malting barley PROs were lowered because export prices have softened in reaction to good conditions for production in Europe.

CWB upped canola PROs in the Harvest Pool and left the Winter Pool unchanged, as canola futures have remained strong on tight old-crop supply concerns in Canada.

Deal brewing for Glencore’s malt division

london / reuters / Glencore, the world’s largest diversified commodities trader, is considering the sale of Australia’s largest malt producer.

Glencore acquired Adelaide-based Joe White Maltings, set up during the 1850s Gold Rush, through its acquisition of Canadian grain-handling firm Viterra last year. Malt, a processed form of barley, is the basic ingredient in the production of beer.

The trader and miner have hired Bank of America Merrill Lynch to advise on the sale, the source said.

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