A market analyst says wheat prices could rise 25 cents a bushel in coming weeks.
Neil Townsend with FarmLink Marketing Solutions said a phase 1 trade deal between China and the U.S. provides more certainty to the market and pushes up prices. “If you were to see wheat increase by 15 to 25 cents because of trade news headlines, that’s probably a good time to think about pricing a little bit. Otherwise the struggles with wheat are that we have a lot of supply and we are struggling to find the demand.”
Townsend said a new trade deal between the U.S. and China, and drought in Australia should push up grain prices. “They had a very short crop last year. So the second half of the marketing year, there should be more incremental demand flowing towards Canada from places like Indonesia, Japan, other markets that are serviced by Australia and we will pick up some of that. Exports have been relatively robust.”
