Winnipeg, July 15 – Global durum values are falling as producers in Europe and the U.S. start selling, leaving Canada out of the market, one analyst says.
“The only one that’s not selling aggressively is Canada, and we’re losing market share, big time,” said Jerry Klassen, manager of the Canadian office of Swiss-based GAP SA Grains and Produits.
European farmers are about 50 to 60 percent finished harvesting durum, Klassen said, which is putting a damper on prices, as the region’s producers offer lower values.
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“The French farmer is selling, the Italian farmer is selling,” he said. “We’re seeing a lot more durum come on the market from Europe.”
Even with heavy rains in France, durum crop quality is better than expected, Klassen said.
Cool, rainy weather delayed maturity during the growing season, which caused harvest to occur later than normal.
U.S. producers are also putting forward aggressive offers as the market gets a better handle on the size of North American crops, Klassen said.
“I think we’ve had some very good rains, there are still some quality concerns about the upcoming crop, but I think people are very comfortable with the yield potential,” he said.
Canadian elevator bids have dropped, but export offers haven’t changed much, with only minimal bids emerging from the country, Klassen said.
“There’s business going on in the market, and Canada’s not getting the business.”
Delivered elevator durum is between $6.59 and $7.35 per bushel in Western Canada, while new crop prices are about $6.57 to $7.20, according to data from Prairie Ag Hotwire.
