The Canadian Wheat Board has lowered its price outlook for the coming
crop year due to good growing prospects in the European Union, Ukraine
and Australia.
Its outlook for the current crop year was little changed.
But Duane Lee, a board market analyst, said competition for wheat sales
could increase in the new crop year.
“Production prospects in the Ukraine, former Soviet Union, the EU are
looking good in all those areas.”
He said the American winter wheat crop is dry in some areas and could
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turn out smaller than expected.
As for durum, while it is still dry in North Africa, production
prospects in southern Europe, Turkey and Syria have improved.
He noted the International Grains Council is forecasting a 598 million
tonne global wheat crop, up 18 million tonnes from last year. That
includes improved production in most of the world, including India, the
United States and Canada.
“It’s March. These forecasting organizations assume normal moisture
conditions from here on and, based on that, you come up with an average
type year,” Lee said.
“This year, we (in Canada) are obviously at risk.”
