CWB Sees Improved Milling Wheat Price

WINNIPEG - Nov 20/08 - SNS -- The Canadian Wheat Board (CWB) boosted its price forecast for milling and durum wheat in its latest Pool Return Outlook (PRO) for the 2008-09 crop year, but reduced the average price forecast for feed and malting barley.

Discussing the situation facing milling wheat, the CWB said, "Extreme volatility in financial markets was mirrored in global commodity markets during the past month. While continuing to exhibit large price swings, U.S. wheat future values are nearly unchanged from a month ago.

"World wheat production continues to increase, with the U.S. Department of Agriculture now projecting a world crop of 682 million metric tons (MT). The record world wheat crop continues to pressure prices in most exporting regions.

"The Australian harvest has been hurt by early-season dryness and quality has been downgraded by recent heavy rains. Despite the smaller crop estimates for Australia, production is still expected to be 50% larger than 2007.

"Argentina's crop continues to decline under hot, dry conditions. The reduction in Southern Hemisphere production has provided only minor support to futures and cash markets. Large crops in Europe and the Black Sea region are pressuring international values. The weakened Canadian dollar has helped support the PRO along with a dramatic drop in ocean freight rates."

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