DURUM wheat prices soared last season, moving above $550 a tonne because of problems with crop quality overseas.
The price has come back, but is still strong, at $380/t.
Whether the price remains strong will be very dependent on what happens with the Canadian crop this year, according to Cargill's John Arrigo, a guest speaker at the Southern Australia Durum Growers Association's annual pre-seeding forum.
"Australia's durum price is really dictated by and influenced by Canada's crop," he said.
Conditions were positive for Canadian graingrowers going into their 2015 season.
Mr Arrigo said an increase in durum area seeded was expected this year.
"With the spike in the price of durum last season, we do expect to see a lot more planted worldwide this year," he said.
"Last year's spike in price was not caused by supply and demand, but rather a lack of quality in the marketplace."
It would be positive if Australia could lift its durum production, he said.
"Australian growers are the card-holders to being a major global player," he said.
"With production of 250,000t we can't command a premium over the Canadians, who are producing 4mt.
"The market is willing to pay a good price for Australian durum, but that price depends on the quality."
Paula Thompson
Stock Journal's markets editor.
Stock Journal's markets editor.
