Durum is a Dog

Of all the crops grown in the province, the one with perhaps the worst market outlook is durum. The one bit of good news is that the European Union has removed a tariff that was slapped on Canadian durum for the past month. Beyond this victory, the Canadian Wheat Board is admitting that durum is a troubled market. Here in Western Canada, durum production is up a million tonnes from initial expectations. The American crop is up 30 per cent from last year. At three million tonnes, it’s the largest U.S. crop in more than a decade. North Africa is the largest importer of Canadian durum, but their production has increased by 70 per cent as compared to last year. They won’t need to import as much. The Pool Return Outlook for No. 1 durum with 13 per cent protein is a dismal $4.40 a bushel after deducting average Saskatchewan freight and handling. Durum usually sells for a premium over spring wheat, but this year it’s likely to sell at a discount. And although the CWB has not released any official estimates, there will probably be another sizable carryover at the end of the crop year that producers will have to store. Durum is looking like a real dog. I’m Kevin Hursh.