The former Canadian Wheat Board was bearish in its first report for the two pools.
Compared to prices in its 2013-14 winter pools that were released in late November, the PROs for all crops were lower, as were basis levels.
“Given the very burdensome western Canadian old-crop situation, and assuming an average crop next year, an abundance of grain will continue to pressure Canadian prices in 2014-15,” said the report.
Global ending stocks of wheat and coarse grains are also expected to increase in 2014-15, which will be bearish for prices going forward.
But it is important to understand that the PROs were determined by information available now, and prices will change as the size of next year’s crop becomes clearer, the report added. – Commodity News Service Canada