Grain markets this week were trending downward.
Future Commodity Advisor with P.I. Financial Adam Pukalo says the trend with the July Canola contract is lower overall, while the November contract is sitting around the $650 per metric ton level.
“Definitely talking to producers about the new crop and ways of protecting their price for what they might be putting in the ground right now,” Pukalo said. “I’ve been hearing clients across the Prairies (of) some pretty good conditions, also some dry conditions so a little bit mixed overall right now.
He says the soybean market still in a downward is influencing the price of canola, however, he sees the aggressive selling will stop for the short-term.
“There are some concerns about this dry weather in the forecast for some areas of the U.S. Midwest, but many traders see the dry weather as a reason to suspect that kind of active plantings over the near term, so that’s kind of one thing I’m watching here is to see how the planting reports go.” Pukalo added.
For wheat, the Minneapolis contract has been on a downslide according to Pukalo, sitting at around the 8 dollar a bushel range. The Kansas City wheat contract has come down from highs, and Chicago wheat was near contract lows.
“A very strong rally in the U.S. Dollar and weakness overall in the financial markets has been spilling over to the grains I believe. Crude oil still sitting above that 70 dollars but kind of down this week too,” he added.
Pukalo says the big things to watch for next week is the U.S. Debt Ceiling, which he believes will get done at the last minute, as well as an OPEC meeting on June 4th as Chile could cut oil production. If Chile does follow through with cuts, Pukalo believes that could be a positive thing for the oil market.
