|CWB Pool Return Outlook|
|Written by Neil Billinger|
|Thursday, 25 June 2009 04:40|
The June PRO's are higher for malting barley and durum . . . and relatively stable for wheat.
Malting barley was the biggest mover at $7 per tonne. Lower production is forecast in North America and Europe. Australia should have a better barley crop . . . but it is still dry in the western part of the continent. Argentina barley production is expected to rise 10 per cent. The spread between malting and feed barley has widened over the past month. Global demand should improve slightly from last year.
The durum PRO's are $1 to $4 a tonne higher than last month. The North American durum crop is two weeks behind normal and dry conditions are also a concern. Harvest is progressing in southern Europe . . . with some quality issues arising in Italy. Durum production in North Africa is expected to exceed last year's total by at least 75 per cent.
Wheat values are relatively stable . . . ranging from $1 a tonne higher to $1 lower. The only exception is Canada Western Soft White Spring Wheat, which is down $5 per tonne. Over the past month, North American wheat supplies have become more of a concern. In the United States, hard red winter wheat results show adequate yields . . . but low protein levels. Moderate rains and warmer than normal temperatures in Eastern Europe have been favourable for the wheat crop.