Rick Steinke, Director of Market Analysis, says a number of factors are creating strong fundamentals in both markets.
Drought in the U.S. as well as parts of Europe has affected their spring wheat crop for this year.
Compounding the situation is what's taking place in Russia and Ukraine, where harvest is underway and yields are down compared to last year.
Meantime fundamentals in the barley market are starting to look beneficial for our Canadian crop as well.
An increased appetite for beer in China and poor crops in parts of Europe and Australia are creating a growing demand for malting barley.