WINNIPEG — The volatility in the global wheat market in recent weeks has largely bypassed durum, which has seen its premiums over hard red spring wheat erode slightly in Western Canada.
“Durum does what it wants, when it wants,” said a Saskatchewan-based durum broker, who noted that the recent strength in Canada Western Red Spring wheat was largely because of movements in the U.S. futures market and the uncertainty over Russian exports.
The broker said durum was largely separate from that activity and world customers are still interested in buying durum, although domestic elevators are largely covered for the near-term.
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Durum prices are topping out at slightly less than $10 per bushel in Saskatchewan, according to Prairie Ag Hotwire data, which is down by about 50 cents over the past month.
Meanwhile, top-end CWRS bids can be found above $6.60 per bu., up 35 cents on the month.
Canada Prairie Red Spring wheat has shown even more improvement, rising by more than a dollar in Saskatchewan during the month.
Much of the strength in durum is stemming from the smaller, lower quality crops in Canada and the United States.
The broker said elevators were doing a lot of blending but could only do so much given the lack of higher quality supplies.
Some customers will buy only No. 1 durum, but the broker said others have found that they can make their products with lower grades of durum than they ever have in the past.
