New player hits durum world to change major players order

According to Viterra SA accumulation manager Ben Harfield, this year would highlight the significant impact from Tukey on the Australian and global market.

"Production wise, Turkey has not really hit the scale in the previous years but it is because they have not been an exporter," he said.

"But recently, it is pretty clear, production and exports out of Turkey has changed the market."

Mr Harfield believed Turkey's new-found export strength and elevation in margins, would offer a great advantage.

"In the last two years, (Turkey has) gone from being an importer of durum to an significant exporter," he said.

"Looking to the coming season, too, global supply and demand, is more slack and not snug, with a bit more availability at the moment."

Global durum production is about 35 million to 38m tonnes of each year and 7.5-8mt is determined export volumes.

Canada is a large part of the export trade and Australia's biggest competition on the international market, followed by the European Union, Mexico, United States and now, Turkey.

"All eyes are towards Canadian production this year," Mr Harfield said.

"They have a lot of snow cover and their crop is most furthest off from being made."

According to Mr Harfield, Canada needed a significant production or quality issue to swing global production momentum.

"They are still a long way from home," he said.

Elsewhere, North African production had remained inconsistent the past couple of years and the region had taken a lot of lower grade durum from Australia.

Last year, Viterra, exported its first cargo to Algeria, showing new markets continued to emerge, says Mr Harfield.

The EU has had recent rain, which improved its production but it was still a long way from "making their crop", according to Mr Harfield.

"North African production is similar, after recent rain basically saved their season," he said.

"Their production also remains inconsistent and further supports taking lower grades of Australian durum."

Locally, production is slightly lower across the country, with reasonably tight carryover.

"There is certainly not much left in SA," Mr Harfield said.

"There is certainly a narrower premium compared to bread wheat this year. It will not be as significant as in previous years.

"Australia will continue to compete with EU and Canada on quality and Turkey for the lower grades."

Last year was the second highest production year globally, out of the past five years.

And this year, with Turkey production significantly up, it pretty much offsets the Canadian production reduction.

Australia's average production is 350,000t, while domestic is a couple of hundred tonnes, of which 150,000 hits the global market.

"We have a significant export program out of NSW, the bulk is out of Newcastle, NSW," Mr Harfield said

"Australian durum is known for quality characteristics and the demand is certainly strong from Italy, with the lower grades heading to North Africa."

Mr Harfield said Australia's higher-grade durum played an important role on the international market.