A weaker Canadian dollar and a “dramatic drop” in ocean freight rates are supporting the Canadian Wheat Board’s latest pool return outlooks (PRO) for wheat.
Wheats rose $5 per tonne in the November 2008-09 PROs released last Thursday. For example, the PRO value for No. 1 Canada Western Red Spring (CWRS) at 14.5 per cent protein increases to $324 per tonne, while No. 1 Canada Western Red Winter (CWRW) rises to $268 per tonne.
A record world wheat crop, which the U. S. Department of Agriculture recently pegged at 682 million tonnes, continues to pressure prices, the CWB said.
Durum values also rose in November’s PROs, by $10 per tonne. No. 1 Canada Western Amber durum (CWAD) at 13 per cent protein rises to $360 per tonne, and No. 4 CWAD to $302. Feed-grade No. 5 CWAD is up just $5 per tonne, to $200. Demand is expected to pick up in coming months as consuming countries exhaust their supplies, the CWB said.
PRO values for both malting and feed barley are down $3 per tonne, with No. 1 CW feed barley (Pool A) now at $190 per tonne, and Select CW two-row and six-row malting barleys at $324 and $304 per tonne respectively.
Large barley crops have been harvested in Europe and the Black Sea region and are being “aggressively marketed,” leaving North American barley values less competitive despite ocean freight rates, the CWB said.