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Market analysts are divided on the grain price outlook for the months ahead. Some analysts point to India and China saying their increased demand is going to be good for prices. Both countries seem to be pulling out of the recession quite nicely. According to the USDA, Chinese corn and soybean production will be down this year and China has the money to ramp up imports. India has enacted anti-hoarding measures that have caused a drop in yellow pea prices, but that should be a short-term situation and then they could be back in the market. However, some market analysts are taking a much more bearish view. David Drozd of Ag-Chieve in Manitoba has been predicting that markets will come under extreme pressure over the next few months. He says the technical factors and the fundamentals are both painting a bad picture. Drozd worries that prices will break below defined areas of support and fall lower. He says grain prices right now may be attractive compared to what prices might look like two or three months from now. So when the analysts can’t agree on where prices are going, what are producers supposed to do? Well, if you can make some sales at a profit, that’s never a bad strategy. I’m Kevin Hursh. For more grain prices visit www.dynagra.com
DynAgra is a full service independent ag retail, serving western Canada.
Kevin Hursh, PAg CAC