Canola and wheat futures prices have been riding a wave over the last few weeks, says a Commodities & Investment Advisor and Portfolio Manager with Ventum Financial in Winnipeg.
David Derwin says the November canola contract hit a high of $840 a tonne in late July, then dropped to around $750 a tonne before climbing up to around $780 in recent trading.
November canola closed Tuesday at $781, down $13.90, according to BarChart.com.
Derwin says a few factors were in play with canola.
The price of crude oil was around $91 a barrel in late July before falling to as low as $74 last week then rising to $83 as of Tuesday.
He said, "the fact that crude oil had a bit of a pullback and now a little bit of a float back up these last couple of days would have that typical influence on canola."
The weather from hail and a heatwave in July to the heavy rain in June "had maybe some impact", Derwin said.
"And now the seasonals tend to kick in at this time of year and financial gravity tends to take over and pull grain prices down into the September-October timeframe into the harvest. So that's, I would say, some of the main factors that we're seeing." he added.
Canola has been following a similar up-and-down pattern with soybean prices.
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