Market Outlook - Wheat

• Bids to Canadian prairie producers have been relatively flat with basis improvements being thrown at producer bids to entice product into the system when needed on futures drops. The market sits comfortably for the time being but will keep its focus onto winter wheat conditions in Black Sea, European Union and United States when they do begin to break dormancy into April. The crops in these regions are believed to have escaped the worst of the winterkill scenarios mid January. Some drought issues in the U.S. winter wheat growing region and some mixed state-by-state analytics in the periodical updates provided on the overwintering crop. Once dormancy breaks, that’s when we will know the best and the market will likely stay sideways until it gets a solid feel of what that crop looks like. Aside from this, demand drive is what the market will need to see to chew away at some of the increased stocks that have ended up on the global balance sheet. As for Western Canadian wheat values, we are continuing to anticipate a neutral market for the coming weeks ahead as we currently sit in a demand driven market and global supplies have grown but are well understood. Canadian wheat has been doing a good job at maintaining its competitiveness in the global market but will need to be cognizant to remain competitive as U.S. export values have dropped recently. Anticipating sideways markets for the near future.

Market Outlook - Durum

• Price outlook overall for the crop appears relatively flat as has been for much of the marketing year for western Canadian producers. Stocks are higher than the year prior in Canada / globally and exports are strong versus where anticipations were at the beginning of the season. Markets are focused on how Canadian and global ending stocks will shake out for durum and, plus how the North African and Mediterranean, European crop prospects appear over the coming months. As of right now, all reports show favorable conditions for the cropping regions with reports of very few issues in these areas so far. The market will also turn attention to the Canadian prairie agroclimatic closer to spring. Markets remain in a demand driven market, with limited production news to send market in either direction.