Ag Canada has released an optimistic report on grain prices and crop production this year.

Spokesman Fred Oleson sees expanded wheat and canola production with prices for both crops up about 10 per-cent from last year.

Oleson says wheat production is up this year about an extra million tons and demand is strong.

Canola production is expected to reach a new record this fall and prices remain buoyant due to the impact of drought in the U.S.

He says canola prices are being supported by high soybean prices in the States and especially high soy oil prices.

Oleson says the outlook for pulse and special crops is also positive with prices across the board staying fairly strong.

Oleson expects rising pea and lentil exports to China and India in the coming year.