A Happier Harvest SeasonOct 28
The durum and spring wheat harvest has wrapped up in the Northern Plains with a sigh of relief. Producers seem to be very pleased with both their yields and quality as compared to last year’s crop, which was negatively impacted by mid-harvest rains. Minot Milling has already seen new crop durum deliveries, from growers enrolled in our sustainability program, which exhibit quality attributes better than the mill has seen in several years. We are very proud of these growers that have partnered with us. They have shown that they can achieve favorable results that benefit them today, as well as future generations, through the practice of sustainable agriculture.
The North Dakota Wheat Commission has recently reported that the world durum situation in 2020 is characterized by smaller crops in the EU and North Africa, and production rebounds in the U.S. and Canada. Total world production is up marginally from 2019 at 1.25 billion bushels, but still about 8% below the 5-year average. The consecutive years of declining production in the EU and North Africa, combined with robust durum demand last year (for both feed and food use), has shrunk 2020 beginning inventories in many key countries as well. June 2021 stocks may hit a six-year low. This is leading to higher world prices for durum compared to this time last year, and prices in Europe are showing a firmer trend relative to the U.S. and Canada.
All in all, Minot Milling is positioned very well for 2021. We anticipate our farm inventories will be more than adequate to support the mill’s grain requirements for the upcoming year.