Canola and wheat futures were up this week.
Future Commodity Advisor with P.I. Financial Adam Pukalo says the ICE Futures November Canola contract was up 17 dollars on the week. He noted a very large increase for the November contract since June 1st, up approximately 130 dollars.
He says the Stats Canada seeded acres report on canola, as well as the soybean market influenced canola prices.
“Right now it seems the U.S. soybean crop is at its worst start since 1988, so a very big surprise, however, there is still significant time for improvement in the crop conditions, so I believe right now producers – especially with soybeans having a large increase helping canola out recently – that now might be a time if farmers haven’t sold very much new crop, it could be a time to potentially catch up on some sales or even protect using futures and options, especially if they’re unsure of what their crop is going to be like.” Pukalo said.
Minneapolis wheat, meanwhile, was up about 40 cents a bushel this week, but Pukalo still described it as “trading sideways”.
“Seems that the bear camp still holds a firm grip on wheat – not really letting it go too far higher but also again not as much lower,” Pukalo said. “There has been some heavy rains across Kansas and Oklahoma that I’ve read about, so it’s not kind of flushed out any kind of aggressive buying.
“I’m seeing that there’s a lot of areas that have inconsistent weather, especially in Canada, and that’s kind of the story that I’m hearing from a lot of farms is either they need a rain or they’re fine, but some areas aren’t getting it, it’s very patchy this year for sure.” he continued.
He says next week’s interest rate announcement from the Bank of Canada is something to watch.