Drought in Spain presents opportunity to Canadian durum wheat

Drought in Spain will lower the competitive pressure by Canadian hard wheat exporters

According to the USDA forecast, the unusually warm and dry weather in the spring together with strong winds in some areas of Spain will greatly reduce wheat yields. Hard wheat yield will decrease by 0.8 million tonnes, down by22% compared to last year.

This is good news for Canadian exporters of durum wheat, who sold cheap wheat in Algeria. Algeria is the main market for the Canadian durum wheat this season. According to CGC data, in the current season 886,400 tonnes of the crop were exported from Canada to Algeria.

In the recent months, strong competition for the Canadian durum was the cheaper wheat from Spain and Mexico.