Winnipeg, June 25 – CWB price outlooks for the 2015-16 early delivery and annual pools rose significantly on Thursday for wheat, durum, malt barley, canola and field peas due to worries about drought in Western Canada.
CWB raised Pool Return Outlooks for canola by $55 per tonne due to a rising futures market. Recent strength in the Chicago soy complex is also supportive, as are worries about Prairies dryness harming production. Crop production estimates for the 2015-16 Canadian canola crop continue to decline because of the unfavourable weather, with projections now coming in around 12.6 million to 13.0 million tonnes, a CWB report said. Statistics Canada data shows 2014-15 Canadian canola production totalled 15.6 million tonnes.
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Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Late season dryness and warmer than average weather in the Mediterranean is having a mixed impact on crops, while conditions are generally good in Europe as harvest approaches.
Durum production in the U.S. is looking better than in Canada this spring, with North Dakota’s crop recently rated about 90 percent good to excellent.
Projected returns for wheat were up $24 per tonne compared to the May report, as the U.S. futures market was trend higher.
Concerns about wet weather slowing harvest and increasing disease potential for the U.S. hard red winter wheat crop are supportive. Dryness in Western Canada is also a problem for spring and winter wheat crops.
The price return outlooks for field peas and malting barley are also up sharply, as a lack of moisture is negatively impacting production. Support for malting barley also came from strong domestic feed prices.
CWB PROs include the general assumptions of a Canadian dollar at US81 cents, and a current forward futures structure for wheat and canola.
Click here for the full break down of the latest PRO.
