Saskatchewan farmers are seeing skyrocketing wheat prices this month as the market is being pushed upward by concerns over dry weather.
FarmLink Marketing Solutions market analyst Neil Townsend says dry weather in parts of the northern U.S. and the Canadian prairies is fueling concern about wheat supplies.
He says prices have jumped 50-to-70-cents a bushel in the past few weeks but weather is the key factor.
“If we get a good soaking rain and things stabilize, you’re going to take out some of the gains which have been made,” said Townsend. “I don’t think the market can completely sell off until we see a much better condition.”
Townsend also pointed out the U.S. planted the smallest area to wheat in the past 100 years.