Durum planting has almost concluded in the region, but the demand for U.S. durum remains sluggish, leading to a slight dip in prices. Cash prices in North Dakota hover around $8, higher than the national average of $7.86.
However, with producers focused on completing field work, there is limited market direction. Domestically, millers and pasta manufacturers continue to make steady but cautious purchases, with little coverage expected into the fourth quarter.
Anticipation for this year's harvest is high, as supplies will be needed to meet demand. The durum crop is emerging well, with seeds nearing completion in North Dakota and Montana. However, the warmer-than-normal weather and sporadic rainfall have resulted in dry areas. In the desert durum region, harvest is underway, but this year's estimated production is approximately half of last year's due to lower acreage.
The outlook for durum production is promising globally, with Europe estimated to see a 5 percent increase. However, North Africa is once again experiencing dry conditions, further straining world durum supplies. World ending stocks are projected to decline by nearly 20 percent, the lowest in 30 years.
Export demand for U.S. durum wheat fell short of expectations, contributing to lower prices. Softened export prices are observed worldwide due to reduced import demand and increased crop production prospects. The focus in the coming months will be on Northern Hemisphere production.
Photo Credit: GettyImages-Alex Cha
Categories: North Dakota, Crops