Cereals are still dogs

Wheat, durum and designated barley prices are showing some strength, but they still aren’t very attractive. In the latest Pool Return Outlooks from the Canadian Wheat Board, there is little change in the values for the current crop year, but price projections are up for the new crop year. Wheat futures prices have increased to over $6 a bushel in recent weeks due to drought in Russia and Kazakhstan and the excess moisture problems here in Western Canada. However, wheat fundamentals remain bearish. The new crop Pool Return Outlook is up about 20 cents a bushel from last month, but that puts No. 1 CWRS wheat with 13.5 per cent protein at only about $4.50 a bushel once average Saskatchewan freight and handling is deducted. That’s about 30 cents a bushel less than the price expected in this crop year.

New crop durum has jumped up about 35 cents a bushel from last month, but that puts No. 1 durum with 13.0 per cent protein at only $4.09 a bushel. Two row designated barley for the new crop year is up 22 cents a bushel, which gives a Saskatchewan price of about $3.25 a bushel. Most other crops still have far better price prospects than the main cereals. I’m Kevin Hursh.

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