Saskatchewan Agricultures Grain Marketing Workshops this week featured a Market Outlook presentation.
David Drozd of Ag-Chieve Corporation told the crowd we have a record carry out of wheat predicted in the world.
He says that means we’ll have a lot to chew through before we see any substantial movement in prices.
"We've been traditionally looking around the 650, a little better area. That is the ceiling we will see here, moving forward for the next while. With respects to durum wheat's, we're starting to see bids around that $8 area," he said.
He notes Malt Barley is about 5 to 5.25 with ample supplies.
Maltster’s are turning away samples meaning new crop if you’re seeing those kinds of bids it’s something to consider.
He also noted when it comes to pulses pricing looks good given our record production.
"Looking at the pea crop here, right now old crop has had a nice rally up to that $9 range. Based on our cash price charts it's resistance and we also did have a record production of peas this year. Carry out is forecast to go up 400% to 880,000 tons, we believe this bounce to $9 is worth looking at," Drozd said.
He says we also saw a record production in Lentils so we could see limited upside.
Drozd feels with the recent rally and prices around 66 cents for greens and 29 cents for reds it’s something to consider.
Drozd also told producers that we could see a pullback in Canola prices but is optimistic about better prices in the spring.
"The canola market here has also rallied up into an area of resistance here, that marks futures at $523.40, so a $30 rally. We do anticipate some weakness here coming into February and March as that record South America bean crop becomes available," he added.
He notes strength in the Canola cash prices could come from an improvement in basis at the end of the crop year.
When it comes to Flax, he expects to see a nice rally with prices moving higher into the Spring.