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Grains, oilseed price outlooks improved: FCC

Higher prices are expected, according to a Farm Credit Canada analysis
canola field and bins
(Shutterstock)

Farmers can look for higher prices in corn, canola, spring wheat, soybeans and barley this fall according to a Farm Credit Canada analysis.

The analysis by FCC principal economist Craig Klemmer suggests canola prices will hit $520 a tonne in the next six months, up from $443.

Spring wheat should hit $256 a tonne, up from $227, with grain corn at $217, up a mere $2 a tonne.

Soybeans will jump $50 to $494 a tonne. Yellow peas should increase $4 to $267 a tonne.

Durum wheat is forecast to drop $3 to $271 a tonne while feed barley will go down $9 to $228 a tonne.

The analysis notes that a second wave of the pandemic will make recovery of the Canadian economy slower.

World GDP is expected to contract by 4.4 per cent this year but China is expected to grow 1.9 per cent with 8.2 per cent growth in 2021.

Growth in China could support demand for grains and oilseeds.

Lentil and pea prices will depend on India reducing import tariffs.

Ron Walter can be reached at ronjoy@sasktel.net