Short week a positive one for canola & wheat prices, weather the key to continue rally

This week was a short one due to the Victoria Day long weekend, but the July Canola and Minneapolis Wheat contracts made the most of it.

Future Commodity Advisor with Ventum Financial Adam Pukalo says July Canola was up 3 dollars this week while July Minneapolis Wheat was up 40 cents a bushel. The July Canola contract closed Friday afternoon at $666.70, according to The website showed July Minneapolis Wheat close at $7.52 3/4 a bushel.

Pukalo says July canola could reach the $700 mark, and wheat futures could also do well, if the right factors cooperate, such as weather.

“The forecasts in the U.S. is certainly bearish for the southern Plains with beneficial rains expected later next week. However, the Black Sea area is not expected to see any major relief over the next two weeks, so that might keep the bull trend in place until their forecast changes. “said Pukalo. “The weather has a huge impact this time of year.”

Pukalo says developments out of the Black Sea region of Ukraine and Russia is something to keep an eye on — mainly reports of frost in Russia and the general dry conditions in both countries. 

“An interesting development overnight — (Russian President Vladimir) Putin did (say) he is ready to halt the war in Ukraine with a negotiated ceasefire that recognizes the current battle lines. Talking with some clients…taking it with a grain of salt but we’ll see what happens if hopefully that can get resolved.”

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