The latest market outlook from SaskWheat says the supply of quality wheat will be low this year but there is no shortage of wheat.
The outlook says the issue of quality wheat is growing because of issues in Canada, Russia and Kazakhstan.
The outlook remains optimistic about spring wheat prices.
Small U.S. stocks, low U.S. acreage and a struggling U.S. crop will increase U.S. durum imports.
Meantime, the Canadian crop is under extreme pressure, creating very strong elevator bids.
In some areas of Canada, conditions are close to critical.
U.S. estimated crop yields are likely below the latest figures.
There is some harvest pressure selling from Europe, but not too much to pressure North American values while farmers are not sellers.
Shorts of futures against cash purchases will start to get worried by defaults, particularly in South America.
The outlook says there may be some profit taking in the market, but for the short term higher prices are expected.
