Winnipeg, June 9 (CNS Canada) – Durum markets are quietly hanging steady even though larger supplies are expected in 2016-17, one market analyst says.
“It’s a very unique situation because we’ve got bigger crops coming,” said Jerry Klassen, manager of the Canadian office of Swiss-based GAP SA Grains and Produits.
France, Italy, and the United States are expected to produce larger crops this year, but even with that pressure looming, the market has been quiet, Klassen said.
Old-crop stocks are relatively low quality, he noted, which means the market is at a standstill until trade starts from Canadian and U.S. harvests.
Read Also
Canadian crop outlook has improved since January says FCC
Canadian farmers’ overall new crop outlook has improved since the beginning of the year, says Farm Credit Canada.
Analysts had anticipated new-crop French and Spanish durum would be on the market by now, but that hasn’t happened.
Italy has been putting out small offers, Klassen said, but the market is hard to define due to limited activity.
End-users are carrying sufficient stocks for the time being, he added, which is keeping prices at a standstill.
Delivered elevator old crop durum prices are about C$7.43 to $8.07 per bushel in Saskatchewan and Alberta, while new crop prices are about $7.10 to $7.77, according to data from Prairie Ag Hotwire.
Exports for 2015-16 are down from the previous year for two main reasons, Klassen said.
- Bigger crops in competing growing regions meant less room for Canadian product.
- Exports in 2014-15 were above average.
Durum exports as of May 29 are 3.9 million tonnes, down from 4.2 million tonnes at the same point last year, data from the Canadian Grain Commission said.
