Farmers are busy with spring seeding operations.
Over the last few weeks they've seen continued strength in the markets with increases on the futures board up by close to 21% for canola, 23% for corn and hard red spring wheat up by about 23%.
Brennan Turner, CEO of Combyne Ag says the bottom line is that we've got a really, really strong demand function right now.
'With COVID there's been supply constraints or supply chain concerns, some tighter carryouts than what I think a lot of people were expecting. Smaller crops than what we were kind of anticipating back in the fall, and all of this combined with the fact that there are some moisture concerns to start the new crop growing season. This is just amplifying prices to a level that we haven't seen. I mean for corn and soybeans, we haven't seen this prices for eight years for hard red spring wheat. We haven't seen these prices since 2017 and for canola, obviously, it's been a couple of years since canola prices have been up near the $20 a bushel."
He notes it's a combination of some weather concerns, but mostly demand right now and there's a lot weighing on the upcoming growing season.Click here to see more...