Agriculture Canada is predicting a slight increase in area seeded to crops and overall higher crop yield this year.
Agriculture Canada says wheat and coarse grain seeded area will see a small rise this year, while oilseeds, pulses and special crops area will decline.
The forecast says crop yields will rise about 2 percent and prices will remain under pressure but supported by the low value Canadian dollar.
FarmLink Marketing Solutions senior market analyst Neil Townsend does not fully support the Agriculture Canada outlook.
Townsend disagrees with a projected decrease in pulse crop and canola acreage, feeling they could see a small increase this spring.
Agriculture Canada says abundant grain supplies will pressure world grain prices but the low value Canadian dollar will support grain prices in Canada.
Townsend says strong demand is a good factor for grain prices.