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Durum Wheat Prices Steady as Market Awaits New Crop Outlook

In the world of durum wheat, cash bids are stuck in the same range, with prices staying around $8 per bushel. The latest reports reveal a decline in durum acreage, leading to anticipation for new crop production.

The USDA's June acreage report surprised many by showing a significant drop in national durum acres, down 9% from last year. North Dakota and Montana, the main states for durum production, experienced reduced acreage compared to last year and initial estimates.

Market reaction has been muted so far, but attention remains on the North American durum crop. Concerns arise due to variable crop conditions caused by heat and limited moisture. North Dakota's crop is still mostly in good shape, but recent weeks have seen a decline in condition ratings. Similarly, Saskatchewan, the primary region for durum cultivation in Canada, has faced dry conditions affecting crop ratings.

On the demand side, domestic use remains strong, particularly with pasta mills needing fourth-quarter coverage. However, exports have been relatively quiet, with sales categorized as "unknown destinations. Italy's durum crop harvest is underway, but there are concerns about quality due to rain during harvest.

Looking ahead, the market expects slightly lower production and steady demand, potentially resulting in a decline in ending stocks, which could reach a 30-year low. The industry also anticipates increased import demand from Europe and North Africa.

With ongoing uncertainties, including weather conditions and production outlook, the global durum wheat market navigates tight supplies and awaits further developments.

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