Canola and Wheat Prices Hold Steady Amid Harvest Pressure
Canola and wheat prices have shown significant swings in recent weeks but remain on track to increase over the long-term, according to Portfolio Manager at Ventum Financial David Derwin.
The November canola contract has been trading between $810 and $840 a metric tonne, with the contract closing at $824.30 on Tuesday, down $10.90 on the day.
Derwin notes that the $840 level has been an overhead resistance level for canola prices, but believes it's only a matter of time before the contract breaks through this level, given the overall upward trend in grain markets.
Wheat prices have come under pressure in recent weeks due to supply concerns caused by ongoing fighting between Russia and Ukraine, with prices dropping 50-60 cents US a bushel from their highs at the beginning of the month.
However, despite these short-term fluctuations, Derwin believes that wheat is still within a longer-term uptrend and may see a premium price on top-grade commodities once harvest is complete.