Canadian Wheat Board initial prices have been raised to better reflect the rebound in world grains markets that occurred since early July.
The board announced the increases Sept. 10 after they were approved by the federal government, which guarantees initial prices.
The size of the increases was likely no surprise and there was little impact on nonboard wheat and barley prices on the Winnipeg Commodity Exchange. The adjustment repositioned initials to about 75 percent of the latest pool return outlook.
Production slashed
The August PRO jumped significantly after early bumper crop expectations around the world were cut back by weather problems.
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The board says smaller wheat crops are expected in four of the major exporting regions, Canada, the European Union, Australia and Argentina.
Durum prices have seen the most strength as North African drought cut production dramatically and increased import requirements.
Reports of lower durum production in Syria, an important exporter in the Mediterranean region, added support to prices, the board said in a release.
Feed and malting barley prices were helped by dryness in Australia and fusarium problems in the U.S.
The new initials take effect Sept. 23.
Those who delivered grain from Aug. 1 to Sept. 22 will receive adjustment payments. Cheques will be mailed the week of Sept. 29.
