Durum Update

The US and Canadian durum crops have grabbed the attention across the region for sure.  We are faced with record yields, mass carryout mixed into a crop with unprecedented vomitoxin levels across the region.  Our estimates rate the crop around 35%- 40% milling in the US and Canada alike.  Leaving us with over 60% of the crop that is over 2.0 ppm vomitoxin.  We feel the US crop is 100 – 105 million bushels and the Canadian crop is between 315 – 330 million bushels.  This would be the largest Canadian crop on record by 75 – 100 million bushels.  If we add these together we have 425 million bushels of North American durum, this leaves us with a quality problem and not a quantity problem as we have had in the past years to make the price jump up to $15 - $20 for milling durum.  We have the quantity, just not the quality.  As we continue to work through this crop farmers, elevators and merchants alike will be able to clean, sort, blend and handle this crop which is by no means perfect.   Our thoughts on price are we could have some variability in price in the next 30 – 90 days but as we keep moving forward into the next calendar year we feel more and more grain gets conditioned into milling and exportable quality grain.  This grain will eventually keep pressure on prices as time goes forward and is also teamed with the coming of new crop Australian and US desert durum crops as we turn the page into 2017.    

 

 

 


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EFFECTIVE IMMEDIATELY AT ALL LOCATIONS
ALL DURUM MUST HAVE SAMPLES BROUGHT IN TO BE TESTED FOR VOM PRIOR TO HAULING
SPRING WHEAT COULD BE FOLLOWING SOON.
THANK YOU

 
 


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