By Mat Barrett

Mixed grain markets as new crop year approaches

Aug 5, 2020 | 12:44 PM

SASKATCHEWAN – Grain markets were somewhat mixed last week.

Commodity futures advisor with P.I. Financial in Regina, Adam Pukalo, said canola prices continued an upward trend.

“Increasing about $7 per tonne here this week, going from about $485/tonne to about the current level of around $492/tonne,” he said. “So, largely due to the soy markets on the U.S. side still moving higher, in particular on soybean oil. It is actually back to levels where it was in March, so that’s a positive factor.”

Pukalo said there are three main reasons why Canola is bucking its seasonal trend.

“The first is the canola crush remains strong, funds are exiting their short positions, and again, this rally in soybean oil,” Pukalo said. “So, it’s seeming that this strength could continue on a technical side of things.”

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But spring wheat on the Minneapolis exchange saw limited movement. He said Chicago wheat increased over 30 cents a bushel.

Pukalo said the U.S. dollar can be credited with part of the discrepancy.

The weather outlook seems to be quite favourable on the wheat side in the United States according to Pukalo.

Heading into a new crop year, Pukalo said he’s looking for canola to reach its resistance on the November contract.

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mat.barrett@jpbg.ca

On Twitter: @matbarrett6