Offset somewhat by recent declines in both the Canadian dollar and ocean freight rates, uncertainty in markets continues to impact buying behaviour among the Canadian Wheat Board’s customers, the board said.
Grain processors have drawn down inventories, delayed capital investments and moved to “hand-to-mouth” purchasing at a time of record world wheat supply, the CWB said, and the resulting weaker demand is an “underlying factor” in recent “dramatic” declines in grain prices.
PRO values for 2008-09 milling wheat have been cut by $24 per tonne from September PRO levels, with No. 1 CWRS (11.5) dropping to $292 and No. 1 CWRW down to $263.
Milling durum values, meanwhile, are down $37 per tonne, with No. 1 CWAD (14.5) down to $360 per tonne and No. 4 CWAD down to $292. No. 5 CWAD and CW Feed wheat are both down $10 per tonne, to $195.
The October 2008-09 PROs for No. 1 CW Pool A feed barley are down $5 per tonne from the Oct. 9 PRO, to $193 per tonne. Designated barley values, meanwhile, remain unchanged from Oct. 9 at $327 and $307 per tonne for Select CW two-row and six-row, respectively.