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Producers saw good yields for grain, but lower quality for crops, and that could have an impact on the markets.

Brad Magnusson of the Magnusson Consulting Group says for wheat, especially, there was a very large crop globally, which is leading to lower prices, particularly for lower-quality wheats, and there isn’t a huge supply of better quality milling-type wheats.

"As we go forward into the year as well, it's going to be a situation of how much wheat is going to get planted. Some of the profitabilities that we see on wheat will make it difficult to make considerable $/acre out of that wheat crop. I think we're going to see acres cut back globally on wheat," he said.

Also, the new Donald Trump administration in the United States is already having an impact on the grain markets in 2017.

Magnusson says Trump has had a profound effect already on agriculture and trade.

"The biggest issue with the new President of the United States is the uncertainty - what is he going to do? He's so unpredictable that it makes it difficult for economists to predict what is going to happen with trade," he said.

Magnusson adds for canola, the total global crop was down leading to higher prices, and there continues to be a higher demand for that crop.

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