We’ve got bad news for pasta lovers.
Durum wheat, the high-protein grain used to make the bulk of pasta, is at a huge deficit.
In fact, global output of stocks of durum or macaroni wheat will fall to a 13-year low.
The world’s top producers of durum – Canada, France, Italy and the U.S. – all report deficits. Canada, the world’s top producer, reports production losses at 27 percent. Turkey, another notable producer, will also put out a thin supply.
All regions were plagued with unfortunate weather conditions, which resulted in significant damage to the crops by diseases and pests. As a result, much of the grain was unsalvageable – totally wrecked by a series of adverse weather. As if things weren’t bad enough, rain-soaked fields rendered harvesting a mess and contributed to even lower yields. Thus, both grain quality and supply will be severely compromised.
As expected, the thin supply of durum will lead to cost increases. In fact, prices are expected to double, ranging from $12-$17/bushel. Some sales may even soar over these estimates during winter as millers desperately seek out enough top quality durum to mix with lower grades. U.S. consumers can also expect increases that surpass the current near-record high prices.
While durum acreage is expected to expand in North America in 2015, the expansion won’t be enough to see major changes in crop yields. Durum yields are typically low, yet the crop, sharing few competitors, remains in high demand – demand that, this year, may outweigh supply.
Are you looking to expand your durum acreage? Are you in need of ag financing to support your durum operation in another way? Contact AgAmerica. Fill out this initial ag loan application and one of our ag lending experts will be touch. Agriculture loans by AgAmerica offer unbeatable rates, and flexible payment terms, which render an AgAmerica agriculture loan one of a kind. Click here to learn more about agricultural loans by AgAmerica.