Last week was interesting for the markets, with futures looking strong until Thursday, then moving into the red on Friday.

G3 Canada director of market research Neil Townsend says the earlier strength came from a lot of technical factors, especially as the year is moving into a time when weather conditions will dictate 2016 production possibilities. However, Townsend thinks the degree to which the markets went up was too high.

"Now it's coming down pretty hard, and that seems to make a little bit of sense just to kind of make a bit of a correction, but I think really the market is just in a point of view right now where we don't really know what the next step is going to be. Should the market be well above where it is today? Or should it be below where it is today?" He says. "There's lots of macro-economic uncertainty with the U.S. dollar showing some weakness lately."

Despite last week's strength and subsequent drop in the commodity markets, Townsend says nothing has changed in terms of supply and demand.

"We still have lots of wheat, lots of canola, lots of corn, lots of soybeans," he says, "I mean, maybe things are a little stickier in terms of the heavy rains in Argentina that are maybe delaying harvest, but we don't have any situation anywhere right now -- except for India -- where we know for a fact that the weather has produced shortfalls."

Townsend says as of late, weather conditions in North America, the European Union, Russia, and the Ukraine have improved, with no indications of any production shortfalls coming from the Northern Hemisphere.