Last year's drought reduced yields in many areas which resulted in lower stocks for almost all crops in Western Canada.
Chuck Penner, President of Leftfield Commodity Research, says as a result we've seen some historically high prices, especially when it comes to crops like durum as both the Canadian and U-S wheat and durum crops took a big hit.
"Supplies were relatively tight even before this year, and there wasn't much of an increase in the European crop, the other big supplier. So, we have durum bids that are routinely over $20 a bushel, and so that's been that's been very, very positive. The wheat side has also been very, very strong."
Prices in the pulse market also rallied, with pea and lentil yields dropping as a result of the drought.
Penner says yellow peas saw the biggest gains on the pulse market.
"Some of that demand isn't necessarily from offshore markets from China. Let's say it's more from the U-S and domestic in Canada, where some of these processing facilities have cropped up in the last year or so. And so that's helped push prices up to some very high levels."
He notes the Lentil market is still quite strong.
"There are a few warning signals about lentil demand from India, and some of the economic crisis that's going on in Turkey isn't helpful for lentil demand. So there are a few, I don't even know if I call them clouds, but it's not quite as bright and sunny on the demand side for lentils looking ahead over the next number of months"
He notes some other significant crop price increases include flax at $45 a bushel, canaryseed at 50 cents a bushel, and mustard at $1.25 a pound.
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