Producers taking part in Thursday's Hot Topics in Commodities Wheat webinar got some good news.
Wheat prices have been seeing some upward movement of late, following what had been a lower trending pattern for the past few years.
MarketsFarm Market Analyst Mike Jubinville says he doesn't think the Canadian wheat rally is over, noting we'll want to keep a close watch on what's happening with corn and soybeans.
"The underlying fundamentals of the row crops, the bean and corn still look encouraging to me. Corrective measures come from time to time in the marketplaces, but I suspect that underlying support will continue to help wheat. That rising tide that lifts all boats."
He says for new crop prices we're looking at higher $7 a bushel, maybe $7.50 a bushel in Saskatchewan, higher 7's in Alberta.
"Again, from a historical perspective I can't remember too many years, if there's been any over the past 25, where we'll be able to lock in $7.50 or better a bushel new crop for fall delivery this early prior to putting the crop in the ground."
Jubinville says certainly he'd want to hold some crop for whatever the spring may bring for us.
He feels there's likely a potential of higher prices yet to come, but he'd still want to be incrementally selling into these marketplaces as well.
He says producers will want to be watching these markets pretty closely now.
"We are getting into a period at these high prices, where I think we're going to experience some heightened volatility and price action."
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