Agriculture's Grain Sector Look's Promising

Jul 10, 2020

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Considering all the commodities that are in trouble right now, agriculture is still doing well on the grain sector.
 
Errol Anderson with ProMarket Communications says he'll be watching what happens in the USDA report, especially on canola. 
 
"If the USDA gives us a  bullish nod, the November contract we believe has heavy resistance around $488 a metric tonne. Now, if the USDA does not give us a bullish nod, there's a possibility we could fall down below $470 again. So, we're within a $20 window, it's going to likely stay in that range over the next month and I guess weather will basically tell the story."
 
He says the markets are watching and reacting to the weather globally right now and cited the improvement we've seen in the wheat market as an example. 
 
"It's really because of the production cutbacks in both Europe and in Russia. That's provided us some support it created some short coverings. So, there's evidence right now that the wheat market on the futures Stateside has possibly bottomed, and we're gonna start to firm up."
 
He says the demand market for durum is solid, with bids for Number 1, 13% protein at around $8 or higher adding he wouldn't be surprised to see it go higher post-harvest.
 
Anderson notes wheat, durum, peas, and lentils all look promising especially the pulses post-harvest.
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