Pool Return Outlooks for 2005-06 wheat have risen because North American supplies of high grade spring wheat tightened substantially over the past few months due to poor harvest weather in Western Canada and vomitoxin problems in the United States.
Tight U.S. logistics are also contributing to stronger export values.
International competition in the lower-grade wheat market is expected to be strong again this year due to large production in the European Union, Russia and Ukraine, in particular. As a result, price spreads between high and low quality have widened. The strengthening of the Canadian dollar is also having a negative impact on anticipated returns, offsetting the price-supporting aspects of the delayed harvest in durum and barley.
