A Commodity Futures Advisor with P.I. Financial described the performance of wheat futures over the last two weeks as “trading sideways.”
Adam Pukalo says the July Minneapolis Wheat contract increased about 5 cents a bushel for the week.
The July Canola contract however rebounded by 30 dollars for the week, and Pukalo says that contract will expire in the next two weeks, with a lot of volume on the November contract.
“There could be some bear-ish news from the USDA coming today that will maybe put a little downward pressure potentially on the wheat market,” Pukalo said. “Today we might see the U.S. wheat production revise downward along with lower stock estimates, so traders will be watching that report today, especially for wheat, beans and corn to see what next week holds.”
Pukalo says the soybean oil market is influencing canola’s price growth, increasing by 15 percent in the last two weeks, as well as “positioning at the end of contract months.”
“I’m thinking we might get closer to that 700 (dollar) mark in the next couple of weeks again on this July front month here as traders are getting out some of the contracts,” he added.
In addition to the USDA report, Pukalo says he’s also observing what traders might do next week, pointing to a survey from the AAII (American Association of Individual Investors), where “the sentiment right now is investors are actually turning more bullish” on the stock market.
You can hear the interview with Adam Pukalo below.