Wheat prices expected to remain high: analysts
Last Updated: Monday, June 30, 2008 | 12:46 PM CT
CBC News
After weeks of volatility on international wheat markets, prices of the grain appear to have settled down but remain relatively high.
While they are not at an all-time high — grain on the international commodities markets was selling for more than $12 US a bushel in February — prices are more than double compared to two years ago.
Wheat prices in Chicago were above $9 US a bushel last week. Two years ago, they were about $3.60 US.
Canadian Wheat Board market analysts are predicting prices will remain high for at least another year.
In some cases, even those who decided not to grow wheat this year have been able to cash in.
Farmer Neal Hardy didn't plant any wheat on his farm near Hudson Bay after having poor luck with the crop in recent years.
Fortunately, Hardy still had some feed wheat in his bins — although it was wheat that had suffered frost damage in 2004.
He held onto it because prices were so low at the time, he wouldn't have been able to cover his costs. This spring, it was a completely different situation.
"I just sold it a little bit ago," Hardy said. "I sold it to a feed mill and I got $7 a bushel."
If wheat prices have softened since early spring, flooding in the U.S. Midwest could boost them again.
Economists say rising prices of one grain can cause the increase of the price of another grain. When people substitute a cheaper grain for a higher-priced one, the increase in demand starts to push up the price.
David Boyes, a market analyst with the Canadian Wheat Board, notes that flooding in the Midwest has devastated the corn crop, with implications for wheat.
"As you have seen in the news, they have had anything but ideal conditions," he said. "Prices are at record levels for U.S. corn and that is providing a lot of support for the wheat market right now."
Even though a record amount of wheat has been planted this year, prices will remain high for another 12 months at least, Boyes said.
Share Tools
Latest Saskatchewan News Headlines
- Norris, 6 others out in major Sask. cabinet shuffle

- There was a big cabinet shuffle in Regina on Friday, with seven people in, seven out and a slew of portfolio changes. more »
- 3 videos to watch before the Saskatchewan Marathon
- Sunday is race day for the 2012 Saskatchewan Marathon. CBC News reporters Jill Smith and Devin Heroux have prepared feature reports, about running. more »
- Suspect arrested in alleged U of S assault
- A 22-year-old man is charged with sexual assault and uttering threats, following an incident at the University of Saskatchewan, police say. more »
- Scotiabank Hockey Day in Canada heads to Lloydminster
- Scotiabank Hockey Day in Canada is heading west to Lloydminster, Alta./Sask., in February, 2013 for its 13th annual broadcast. more »
Top News Headlines
- Everest victim's husband says family not seeking government help
- The husband of a Toronto woman who died trying to climb Mt. Everest on Saturday says his family is not seeking government help to cover the cost of bringing his wife's body home. more »
- B.C. premier unhappy with disgraced Mountie's transfer
- B.C. Premier Christy Clark says she is not happy with the RCMP decision to transfer a disgraced Alberta Mountie to the West Coast. more »
- Henrique's OT goal sends Devils into Stanley Cup final
- The New Jersey Devils will vie for a potential fourth Stanley Cup in franchise history after defeating the New York Rangers in six games in the Eastern final, courtesy of rookie Adam Henrique's goal early in overtime. more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Norris, 6 others out in major Sask. cabinet shuffle
- Suspect arrested in alleged U of S assault
- New nightclub aims to keep gang members away
- Firefighters describe hostile workplace in Prince Albert
- RCMP to close labs in Halifax, Winnipeg, Regina
- 3 videos to watch before the Saskatchewan Marathon
- Sex products removed from shelves in Saskatoon
- Volleyball team enjoys an impromptu moment with Prince Charles
- Toronto drug dealers visit Saskatoon to ply trade, police say

