The July Canola contract was down 10 dollars a metric ton, just above 700 dollars for the week, while the July Minneapolis Wheat contract was down 14 cents a bushel to around $8.25.

That’s according to Future Commodity Advisor with P.I. Financial Adam Pukalo, who says July Minneapolis Wheat had a nice rally on Wednesday, reaching a high of $8.88 a bushel, compared to last week’s low of $7.69.

There’s a few reasons for where wheat is now.

He says the Black Sea Grain Export Deal between Russia and Ukraine is one factor – it’s been extended for another two months but negotiations continue – and another is corn and soybean markets.

Pukalo says the Black Sea deal is one example of how markets can change with one piece of news.

“Again Minneapolis had a significant rally there in about a week from $7.80 to $8.80 a bushel, so a dollar a bushel, and when that deal came out, we dropped about 50-60 cents right away,” Pukalo said. “I’m seeing and especially talking with clients about protecting on these rallies on their new crop because again, one thing happens and there is a lot of wheat in the world, the fundamentals are not there I believe for wheat to go higher, so selling on rallies I think is the prudent thing to do.”

Pukalo says other factors to watch for moving forward are the Canadian and U.S. dollars, the Bank of Canada potentially raising interest rates, oil prices, and the U.S. Debt ceiling.

“I could see that being a good catalyst for the markets and grains as well,” Pukalo said of the possibility of the U.S. Debt ceiling is raised.

Hear the interview with Adam Pukalo below.