Wheat markets have moved higher over the last few weeks.

"The market has been generally very favourable. The biggest thing the market is reacting to is the Australian situation where excessive moisture has really seriously downgraded their crop in terms of quality," says Neil Townsend, market analyst with the Canadian Wheat Board. "A lot of wheat has graded out as feed that would have been milling wheat. This has been positive to the market."

"We have a crop that is a little bit smaller than projections, but the quality situation is much more detrimental that what people thought it would be," he says.

He says markets are still set to rise through February and March as corn and soybeans battle for 2011 acres.

Wheat values in the CWB's December Pool Return Outlook were up between $3 and $24 per tonne over the November PRO.

~ Tuesday, December 21, 2010 ~