Some positive movement in the grain markets this week.
Future Commodity Advisor with P.I. Financial Adam Pukalo says the ICE Future Canola contract for November was up about 53 dollars a ton for the week, pushing the price up to about 814 dollars. He says this is an increase of approximately 200 dollars since the May 31st low of $611.
For Minneapolis wheat, Pukalo says the September contract is up 30 cents a bushel to around 8.75 cents for the week. Pukalo says he sees more upside for wheat.
He says the U.S. Dollar dropped to a 15-month low, which will support the commodity market overall, bringing on more of a “risk mentality”.
“Usually heavy buying is a good thing for the market,” Pukalo said.
Pukalo sees the Bank of Canada’s key interest rate increase to 5 percent as “a positive sign for the currency” meaning the Canadian dollar.
“We did see the Canadian dollar go up as well this week. The September futures hitting a high of about 76.50 yesterday, so that’s a pretty nice move for the Canadian dollar,” Pukalo said, adding he’s talking with clients about borrowing costs and loans. Oil has also gone up in recent weeks.
One of the things he’s watching in the coming days is the Black Sea Grain Export Deal between Russia and Ukraine, as Russia again is reportedly not willing to extend the deal.