Canada's grain handling and logistical system is being challenged according to Market Analyst Greg Kostal of Kostal Ag Consulting.

Farmers who attended this week's grain marketing presentations, hosted by the Ministry of Agriculture and RBC, heard that it's going to take some time to work through last year's bumper crop, with Stats Canada figures showing Western Canadian Crop Production averaging about 52 million metric tonnes and last year's production totalled 74.1 million.

"Weaker prices is about shuffling the supply growth curb, re-invigor demand such that we are going to be in a better place in one to two years from now I believe, but its focus is on what makes money, what you are economically comfortable with. Have a plan, sharpen your pencil, look into new crop," said Kostal

Kostal says that it's going to be tough justifying selling wheat for four to five dollars, and predicts that in a couple of years pricing should be back on the upswing.