With volatility in commodity prices recently, the market is looking for the next big trend.

G3 Canada director of market research Neil Townsend says in order to see a sustained upward movement in prices, changes need to happen in either supply or demand. Townsend says either more demand needs to open up, or supply needs to be cut.

"On the supply front, we're probably are in the situation where we need one or two or three significant weather challenges that just reduce the pile of grains and oilseeds that we have to start a marketing campaign, a year — and I'm talking about global supply," he says.

Looking at the global situation, Townsend says wheat production is forecasted to drop overall, but not enough in key competitive exporting countries.

"Ukraine is the big one," he says, "I mean, it's going to have a harder year — it produced 26.5 million tonnes last year, and it's going to produce around 20 million tonnes (this year). But even in the Ukraine, prospects are improving, so you know, with a little bit of a yield bump, it's not hard to imagine them walking away with a 21 or a 22 million tonne wheat crop."

Townsend says Russia is also forecasted to drop wheat production, but less than originally expected, with a predicted reduction of only one million tonnes.