The ag markets have been seeing a recent rally due to inclement weather in the U.S.

Jon Driedger, senior market analyst with FarmLink Marketing Solutions, notes wet weather has been affecting a large chunk of the growing region in the U.S., particularly in the Midwest corn and soybean belt. He adds planting progress is far behind normal and the forecast is wet going forward.

"The U.S. farmer is essentially just having a really hard time getting the crop in and of course as the calendar ticks, you start getting very close to the point where it's going to be too late to plant acres or a lot of the acres that do get in, there's questions about what is that yield going to look like on those crops and is there a risk of maybe not meeting yield expectations that you might of had if the crop got in, in a timely way."

Driedger explained what impact this is having on the markets.

"It's most pronounced in corn although all other crops have increased as well. We've had a pretty sharp move higher here, again corn in particular since that's almost ground zero in terms of the market's focus on what's been happening, it would be the crop that would be most impacted," he said. "We've seen wheat and soybeans increase as well."

Driedger says prices have improved in western Canada as well, although the story has been U.S. focused.

He explains the U.S. is very important to our own pricing both directly and indirectly with a "spillover" effect.

He says corn and wheat will be directly impacted, with crops like feed barley and feed wheat seeing some spillover support as we go forward, particularly if this continues to linger and the problem gets worse.

Seeding in Western Canada has been going well, although many areas could use additional rain.