Canola and wheat futures remain on the downward trend.
Portfolio Manager with Ventum Financial Adam Pukalo says the November canola contract is down this week as volatility and soybean and palm oil prices drag it down.
The contract closed Friday at $682.50 a ton, a decrease of $12.90 on the day and down $18.30 over the last five trading days.
"Again, it kind of seems like canola doesn't want to get back above that $700 right now. Soybean prices have been moving lower. Palm oil has been kind of fairly steady as well, too, kind of lower. I would say until maybe the crop comes off, there hasn't been too much on the positive news side for the canola front." said Pukalo.
The trend of the September Minneapolis Wheat contract is the same as canola and Pukalo says its making new lows. The September contract closed Friday at $5.72 1/4 cents a bushel, down a half-cent on the day and about 12-and-a-half cents on the week.
A notable external factor was U.S. Donald Trump following through on his latest tariff threat by implementing a 35 per cent tariff on Canadian goods non-compliant with the Canada-U.S.-Mexico (CUSMA) agreement, should a trade deal not be agreed upon by Friday.
Pukalo said the stock market was down across the board as a result.
"There was lower job numbers than expected as well. so I would say it just seems kind of like definitely a risk-off type of day as well." he added.
Looking ahead, the weather remains a top item to keep track of, according to Pukalo.
"Here in Canada, again, it seems like it's still going to be fairly dry, but there are scattered showers expected as well, too. Whether scattered showers develop or not, it will likely be too late to really help with mature areas across kind of the southern areas of the provinces and damaged areas in the north from what I've kind of been hearing.
So overall, I do think that just the tariff talks are going to probably take kind of front and centre for everything, whether it's equity or stock markets, and again, watching to see what's going to kind of develop over the coming weeks for that."
