The Canadian Wheat Board held on to its market share during the past crop year despite transportation woes and fewer sales to China.
Chief commissioner Lorne Hehn told a news conference last week the board held steady at 19 percent of the world wheat market.
For the first time, Iran became the board’s top export customer, buying more than two million tonnes of wheat. China dropped from 4.7 million tonnes in 1995-96 to 1.7 million tonnes this past year.
The wheat board delivered more than 1.5 million tonnes of wheat to U.S. millers, a sales record to the country.
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Hehn said the board also retained more than 40 percent of the malting barley market, and increased its share of the world feed barley market by three percent to 17 percent.
Durum was a particularly bright spot for the board, which is the dominant player in the world market and holds more than 60 percent of trade.
First durum sale
The board made its first-ever durum sale to Iran. Hehn said the 600,000-tonne sale did a lot to support durum prices during the last crop year.
He said the tight margin between milling wheat and durum helped the board get in the door. This year, the spread is much wider.
“I think this year will really determine what their long-term interests are going to be on the durum side,” Hehn told reporters.
Durum may continue to be a golden crop for farmers, especially considering sharply lower prices for milling wheat and feed barley in the new crop year, Hehn said.
It is expected to maintain and perhaps increase in value because of lower world supplies and strong demand.
The United States durum growing region is having problems with drought and disease. So are Canadian growers.
“It could be a very interesting year for us and for farmers in durum markets.”
Algeria, the world’s biggest durum importer, was also the wheat board’s top customer for the crop last year. Hehn said he travelled to Algiers two weeks ago to sign a three-year supply agreement for one million tonnes per year with the country.
In all, Hehn said the board sold wheat to 65 countries, durum to 31 countries, feed barley to 10 countries and malt barley to seven.
In total, it exported 23 million tonnes of grain. It will carry over seven million tonnes of wheat, 1.5 million tonnes of durum and 3.2 million tonnes of barley into the new crop year.
