Weather is certainly the dominate factor affecting commodity prices right now and that's likely to continue over the next several weeks as we head towards the harvest late next month and into September.
As many crops on the prairies are in desperate need of rain, prices are heading back to where they were a few short months ago. "Canola has had a bit of wild ride," shares Adam Pukalo of PI Financial. "In the last three days, we are up approximately 70 dollars a tonne on November canola. On the Minneapolis wheat front, a bit of fireworks from the USDA report last week so it has actually declined approximately 40 cents, sitting just above 8 dollars, $8.08 a bushel, on the September contract.
Weather is having an effect on the prices shares Pukalo. "One of the biggest things I've been speaking with clients about is how the weather has been taking hold of the grain markets here. Weather conditions have been improving in the States for the corn and soybean areas, so we have definitely seen those markets decline from the highs. When it comes to spring wheat, however, it is still very dry conditions and that has definitely been keeping the prices quite strong."
Over last week canola was up only about 20 dollars a tonne. "I'm seeing quite strong trends positively for all the grains, right now," notes Pukalo. "One thing to watch is that there is going to be a USDA report on Tuesday. That might have some fluctuations on the market. This is the time of year where the weather is the main factor of the markets."
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