Grain futures prices continue to increase for a number of reasons according to LeftField Commodity Research Market Analyst Jon Driedger. During the Dauphin Ag Society Farm Outlook in March, Jon spoke about some of the factors causing the price increase.
According to Driedger, the effects of Russia's invasion of Ukraine that were early concerns at the time of the Farm Outlook, have now become realities.
Some of those concerns about how much of the crop gets planted, what potentially gets exported, it goes from a what if, to becoming increasingly more of a long term problem.
Other issues that would affect prices in a normal situation are also being compounded by the continued uncertainty around the situation in Ukraine according to Driedger.
The winter wheat crop in the southern US is in poor shape, concerns about dryness in parts of western Canada and too much moisture late seeding in others, concerns about the winter wheat crop in China. The war on its own is a big deal for grain markets because Ukraine and Russia are such huge exporters for certain crops, but it's adding on to what were already concerns elsewhere.
