Farm Credit Canada has released their outlook for the grains, oilseed and pulse sector.
FCC's Principal Agricultural Economist Craig Klemmer says prices ended 2020 fairly strong and were seeing that momentum continue with price gains supported by strong fundamentals.
"If we look at stock to use ratios across the board, we're seeing declines in those in overall stock to use ratios and that's supportive of markets. We're seeing strong demand export and domestically for feed grains and grains and oil seeds and that's generally fairly strong. We're seeing trade markets remaining fairly open."
Klemmer says there's actually some good support on the wheat market given some of the global challenges.
"In addition to challenges in production in Argentina, we see that Russia wheat production is supposed to be quite strong. So that's going to offset some of those opportunities. But overall when we look at that kind of fundamentals there still seems fairly favourable and we seem to see some opportunities in the wheat market there."
He says were also seeing some good numbers for durum as well with some fairly strong demand.
As far as pulses there's still some uncertainty when it comes to pulses going to India.
While we're seeing some strong numbers going into seeding expectations for canola and soybeans in North America.