Spring wheat futures have been on a downward trend since the July Pool Return Outlook. The latest PRO from CWB — which is becoming G3 Canada — shows projected returns for 1 CWRS 14.5 are valued at $276 per tonne in store Vancouver or St. Lawrence, which is $19 lower than a month ago. That's a decrease of just over 55 cents a bushel.
Dave Simonot, manager of CWB Pooling, says there was a definite drop in prices with the potential for steady demand.
"For example we've seen good harvest outcomes for wheat across Europe and Russia. We've seen U.S. harvest with spring wheat harvest, come off faster than usual, so these kinds of things are all negative to prices," he says. "Even in Canada the harvest quality is good, and the reports here are that some of the yields are little bit better than they might have been expecting, too."
CWB's projected canola returns are also down, having dropped $40 dollars from July, currently valued at about $400 dollars per tonne in store Vancouver or St. Lawrence.
Siminot says this is partly because canola harvest is far from complete in some areas, especially with quite a bit of acreage reseeded from frost this spring. But he also says U.S. soybean markets have affected canola.
Source : PortageOnline