The surging value of the Canadian dollar has caused a significant drop in the expected prices for wheat and durum in the upcoming crop year.
In its latest Pool Return Outlook, the Canadian Wheat Board has dropped the new crop wheat price outlook by $7 a tonne as compared to the April PRO. The durum PRO has been cut by $11 a tonne on the major grades.
On No. 1 Canada western red spring wheat with 12.5 per cent protein, the expected price after deducting average Saskatchewan freight and handling is now $4 a bushel, down from the $4.27 a bushel expected for wheat in the current crop year.
The new PRO for No. 1 durum with 12.5 per cent protein is $4.50 a bushel once average Saskatchewan freight and handling is deducted. Last month, the durum PRO was $4.80 per bushel, but that was before the Canadian dollar reached a 30-year high.
~Kevin Hursh~