The Canadian Farm Ministry reduced wheat production overnight by 1.1mt to a 5 year low of 27.3mt including durum. The reduction in durum production was 700kt taking total forecast production to just 5mt, also a five year low. Yields across the durum belt were reduced by 0.34t/ha month on month with the average now only expected to be 2.42t/ha.
Canadian durum exports are expected to come in around 4.9mt a rise of 9% as the world goes in search of quality. Rain at harvest in Canada could spell disaster for a crop already hurt by drought and would see prices jump significantly.
Even with falling production for bread wheat in Canada price expectations were reduced by around C$10 month on month thanks to production increases primarily in Russia. The durum wheat price range was increased by C$10 / tonne.
Even with a reduced yield for canola the Canadians are still expected to reap a record 18.6mt but good global demand should help support prices at or close to current values according to the ministry.

US wheat futures strained under the weight of additional fund selling in hard red winter wheat which is once again trading lower than soft red winter wheat in the US. In the corn pit pressure came from the US corn tour participants who are tending to confirm some good yields, at least in the southern corn belt. Soy found support from expected increases in US soy oil demand.