Ag commodity prices on a tear

What a difference a year makes... Commodity prices in agriculture have steadily climbed since the middle of last year across almost all sectors. And today's release of average prices in February by StatCan shows just how much:

• Run-up in commodity prices has been strong for grains, oilseeds and pulses. Barley and corn are showing the strongest gains relative to their 5-year average. Lentils/peas and canola/soybeans prices are much higher YoY.
• Livestock price gains are more muted. Hog prices in all 3 provinces recorded a nice rebound YoY. Hog prices were also at least 5% higher than the 5-year average. Cattle and dairy are the two sectors for which prices are similar to a year ago and their 5-year average.

Strong commodity prices bode well for farm income in 2021. It will also be interesting to monitor the farmland market given the low interest rate environment.