wheat

Wheat is seeing a unique interaction right now between buyers and sellers with weaker values on the wheat export market.

Dave Siminot, Manager of CWB Pooling says the winter crops in the US, Russia, the Ukraine and Europe are just coming out of dormancy so they are just at the edge of where we could see an impact from weather.

"Right now everything is looking okay, there's no problem area in the world. There's enough stocks in the cupboard still that the buyers aren't concerned, plus they've bought far enough ahead. In that environment essentially you see prices dropping at that export position steadily every week as  buyers are sort of standing back because they're comfortable."

Siminot adds durum prices are experiencing the same kind of situation; however in this case a discomfort level has buyers standing back and waiting for lower prices.

"The cupboard is basically bare in terms of old crops supplies. We had disaster harvests in both Europe and western Canada last year, so we never had much in terms of quality and it's been a struggle all this year, and the new crop European durum doesn't arrive until this summer say around July, so buyers need to make it until then."

Meantime, he says despite the current scenario, buyers feel like their covered and are waiting for lower prices.

A similar interaction between buyers and sellers is causing weaker export market values for wheat as well.