Higher corn and soybean prices have increased the price floor for other grains and oilseeds.
Neil Townsend, market analyst with the Canadian Wheat Board, says the impact of tight corn supplies has been evident in the markets since the USDA WASDE report in early October.
"Another story that's quite productive for the market in terms of price support is the story of soybeans to China," says Townsend. "The Americans are exporting soybeans to China in record amounts every week. Soybeans and oilseeds in general have appreciated considerably. So you have corn and soybeans - basically a perfect scenario for a very firm price floor in the market."
"Just lately now, we've also had some adverse weather in the winter wheat areas of the United States, which has been supportive directly to the wheat market."
Wheat values were up between $7 and $15 in the CWB's October Pool Return Outlook.
~ Monday, November 1, 2010 ~