Farm Credit Canada's Chief Agricultural Economist says the recent Bank of Canada quarterly outlook has some great insights for the entire agri-food supply chain.
J. P. Gervais says it points to a continued weak labour market in Eastern Canada and projects slower consumer spending.
He suggests that could put a ceiling on livestock prices.
The bank report talks about global corn and soybean stocks being replenished.
Gervais says only ongoing strength in world demand for agricultural commodities will counter that growth in supply.
While the Bank of Canada says the world economy is slowing - global export numbers over the next few months will determine the future path of grain and oilseed prices.
Then there's the interest rate.
The bank expects those rates to be low into 2015.
Gervais figures that will give grain and oilseed producers some breathing room as they face tighter margins.
But the FCC economist also thinks given the high marketing margins in the livestock industry, the low interest rate environment could encourage some expansion in that sector.