MARKET OUTLOOK – WHEAT

Cash markets in Saskatchewan are touching crop marketing year highs once again this past week for spring wheat. Stronger basis and some support from futures have helped keep the markets higher before pulling back slightly into the weekend. Strong export demand continues to entice product in the system. Globally, the wheat balance sheet looks heavierthan it did just a few months ago but much of the increase in stocks has been anticipated for several weeks already. Canadian and U.S. demand is very strong, and FOB values have been gaining ground. North American exporters will need to remain competitive as large Argentinian and Australian crops are available to the market. We will be looking ahead to winter crop progress as we head intothe coming months and watch for any issues in the European and U.S. winter wheat crops which are in mostly strong shape as of now.

MARKET OUTLOOK – DURUM

Demand remains the big item to watch on durum. The export pace from Canada is slightly behind last year's pace. Western Canadian bids were flattening in the past week and have not seen as much post harvest market appreciation as spring wheat. We will be watching European winter weather conditions for the durum production regions over there.Demand is anticipated to be less than last year, but markets will watch to see if we maintain anticipated pace or move on either side of it. Statistics Canada crop production estimates out next week will be very closely watched by global markets to see how the crop shapes up compared to estimates.