By Scout Nelson
North Dakota's durum wheat market is experiencing a period of stability, with cash prices holding steady between $7.50 and $7.75, and new crop bids slightly lower at around $7. This stability is seen as positive news in the current global agricultural climate, according to Erica Olson, Market Development and Research Manager for the North Dakota Wheat Commission.
"The general commodity complexes have been a bit bearish. At this point, 'stable' is considered good news," Olson remarked. Despite stable pricing, North Dakota producers are facing delays in the 2024 crop planting due to cooler temperatures and precipitation in mid-April, impacting fieldwork.
The USDA's crop progress report as of late April shows that planting in North Dakota and Montana is proceeding at a normal pace, with a slight adjustment in domestic durum usage reducing the overall consumption figures.
Internationally, durum markets are competitive, with Canadian exports down by a third from the previous year. Despite lower buying activity globally, including a modest tender by Tunisia in mid-April, the International Grains Council (IGC) reports that global production estimates remain steady.
Olson also highlighted the potential impact of increased durum acreage in Russia and production in Turkey, which could influence global supply and prices.
"We've heard rumors that durum acreage in Russia may double this year, which could lead to higher production and exports. However, it's questionable how much Italy will accept imports from Russia," she explained.
The market also watches Turkey, a significant durum producer, with its production estimates slightly above last year's figures. "Those extra supplies coming out of Turkey have really pressured prices, even with historically tight stock levels," Olson concluded, emphasizing the need for continuous monitoring of export volumes and market impacts.
This blend of local and global dynamics offers a comprehensive view of the challenges and opportunities facing the durum wheat market as it navigates through 2024.
Photo Credit -gettyimages-alex-chai
Categories: North Dakota, Business, Crops, Wheat