Saskatchewan farmers are watching grain markets continue an upward trend.
Canola was up 53 dollars a ton and spring wheat jumped 47 cents a bushel last week.
Market analyst Errol Anderson of Pro Market Communications in Calgary says dry weather and strong demand from China are pushing markets upward.
“The trick here will be if these prices can hold,” said Anderson. “If they do hold, this is truly inflation. If they don’t hold, then this is just a bubble. But right now, these markets are simply going higher, on the canola side, and the soybeans side, we’re also seeing dryness in Brazil, and that’s adding to this rally.”
Anderson says prices have gone far higher than he ever expected and markets will be on edge until there is reduced demand from China or good crop prospects.
