Generally good crop progress across the Prairies this growing season has pushed commodity prices downward.
According to G3 Canada's latest pool return outlooks (PRO), 1 CWRS 14.5 has dropped more than ten dollars from last month to $264 per tonne in store Vancouver or St. Lawrence, while canola and soybeans are down about $30 per tonne from the June PRO.
G3's manager of pooling Dave Siminot says overall commodity prices are down due to the potential for a big Canadian harvest this year.
"Most areas across the Prairies have seen, not perfect weather, but close enough to perfect that everyone is pretty optimistic that we're going to see very large production across Western Canada," he says.
Siminot adds the U.S has also seen favourable growing conditions with large production estimates, which has also hammered commodity prices.
"Minneapolis wheat that we trade off primarily is struggling to stay around five dollars per bushel, which is the lowest it's been for several years, and durum is coming down the same way," he says. "Canola has come down to sort of the $400- or $450-per-tonne mark, and soybeans, as well, are coming back into the under-ten-dollar range from where they were earlier this year."
Siminot says a slight weakening in the Canadian dollar has been helpful, but overall commodity prices have dropped.