durum prices

[Jagfarms]

With the price projected for durum it looks like we will make more money collecting crop insurance on our 7bu/acre lentils than we will from a 45bu/acre durum crop.

[bucket]

And thanks to the cwb you can cut that 45bpa into 22.5 because you will be lucky to generate revenue off any more than 50% of your durum.

[skhadenuf]

Snappy what would be the positive spin on having grown durum this year? These guys are depressing me too much!

[kryger]

100% hailed out. Money up front, no expenses hauling it to town. The best positive spin on it, you don't have to deal with the CWB.

[Jagfarms]

http://news.tradingcharts.com/futures/1/6/131127761.html

WINNIPEG, MB, Nov 05, 2009 (Resource News International via COMTEX) -- The removal of a European Union tariff that had jeopardized C$200 million in exports of durum from western Canada was welcomed by the Canadian Wheat Board, a release from the organization said Thursday. "During times of low global grain prices, import tariffs become more common," said CWB president and CEO Ian White, noting that the EU tariff was removed after the CWB and other grain-industry players raised concerns about errors in its calculation. "Although the removal of a tariff into one market is not enough to brighten the overall situation for western Canadian durum producers, it is an important issue," White said. The EU tariff on high-quality durum was in place for a month before it was removed October 30. Sales into the market were hindered as customers took a wait-and-see approach to the impact of the tariff, the CWB said. Western Canadian farmers grow more durum for export than any other farmers in the world. The CWB exports a total of about 3.5 million metric tons of durum each year on average, about half the entire world trade. The EU, particularly Italy, is a key durum market for Western Canada, usually ranked among the top five customers each year. Durum prices have dropped significantly as available worldwide supplies have increased at the same time that global trade is expected to be reduced by about 6% to 6.9 million tons, the CWB said. Western Canadian farmers have produced an estimated 5.2 million tonnes of durum for the 2009/10 (Aug/Jul) crop year, which is the fifth-largest crop ever. Another significant factor affecting durum prices was an unexpected increase in US durum production, which is up 30% from last year to three million tonnes, the largest US crop in 11 years, the CWB said. Meanwhile, durum production in North Africa, generally the largest importer of western Canadian durum, has increased by 70% over last year to 5.8 million tons, which will reduce its import demand, the CWB said. The large North American production has combined with weakened demand to create significant pressure on prices, the CWB said. The CWB's 2009/10 Pool Return Outlook for high quality durum is C$216 per ton, down 41% from the projected final return for the same durum last year.