Wheat prices fell across all major exporting countries since last month’s WASDE with improved
winter wheat conditions in several key production regions. Furthermore, some importers are delaying
purchases awaiting the upcoming harvest in anticipation of lower new crop prices. The biggest reduction
over the past month has been for Russia, where crop prospects have improved and export quotes have
eased amid the current export policies, including the announcement of floating taxes for the new crop
year. Its quotes are currently the most competitive. EU quotes have also eased and remain slightly
above Russia. Argentine quotes have fallen modestly with slowing farmer sales. Australian quotes have
edged somewhat lower with new supplies but remain supported by strong demand from Asian markets.
Quotes from Canada are currently the highest among major suppliers. USDA RELEASE APR 09
WARD WEISENSEL FOR SASK WHEAT - OCTOBER 2020
Only a single seller of the product can price differentiate to extract a greater portion of a
customer’s willingness to pay which was the case for wheat, durum and barley with the
operation of the CWB prior to the regulatory changes enacted in 2012. In that era, many
customers were paying premiums for Canadian wheat and durum relative to what they would
have had to pay for similar quality U.S. spring wheats and durums. That said, many customers
were not willing to pay premiums as the market for high quality spring wheat and durum is
limited. As a result, in order to clear the market, a significant volume of grain would be traded at
values at a discount to U.S. values as that is what it took to sell the grain that was offered for
sale by farmers to the CWB at the time.
HOW WILL THEY KNOW?
winter wheat conditions in several key production regions. Furthermore, some importers are delaying
purchases awaiting the upcoming harvest in anticipation of lower new crop prices. The biggest reduction
over the past month has been for Russia, where crop prospects have improved and export quotes have
eased amid the current export policies, including the announcement of floating taxes for the new crop
year. Its quotes are currently the most competitive. EU quotes have also eased and remain slightly
above Russia. Argentine quotes have fallen modestly with slowing farmer sales. Australian quotes have
edged somewhat lower with new supplies but remain supported by strong demand from Asian markets.
Quotes from Canada are currently the highest among major suppliers. USDA RELEASE APR 09
WARD WEISENSEL FOR SASK WHEAT - OCTOBER 2020
Only a single seller of the product can price differentiate to extract a greater portion of a
customer’s willingness to pay which was the case for wheat, durum and barley with the
operation of the CWB prior to the regulatory changes enacted in 2012. In that era, many
customers were paying premiums for Canadian wheat and durum relative to what they would
have had to pay for similar quality U.S. spring wheats and durums. That said, many customers
were not willing to pay premiums as the market for high quality spring wheat and durum is
limited. As a result, in order to clear the market, a significant volume of grain would be traded at
values at a discount to U.S. values as that is what it took to sell the grain that was offered for
sale by farmers to the CWB at the time.
HOW WILL THEY KNOW?
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