Canola Future Update
November canola futures have reached $485/ton.
I’m watching for this level to hold, otherwise, there could be more downside.
There will be an opportunity to buy canola, but I’m being patient for the time being.
I’ve been vocal with my clients when I saw the futures around $520/ton on November to look at adding in some protection.
Factors to watch going forward will be the soy market and Canadian Dollar.
Even with soybeans as low as they are, I don’t want to rule out possible more downside.
However, Chinese cancellations of 432,000 tonnes of mostly old crop soybean sales, the net weekly total was still over a million tonne.
This means other world buyers are strongly moving in to buy the now cheap US bean market.
The Bank of Canada decided to raise interest rates 1.50%, which should a positive factor for the loonie.
With the trade tensions building daily it seems this will be the biggest issue going forward.
I don’t think any time soon we are going to see the loonie go significantly higher.
If anything, there could be more negative pressure given what is going on in the world.
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