Canola markets/strategy

[charliep]

Any thoughts on the canola market?

Production likely in the 12 to 13 MMT area. I suspect with 6 MMT plus domestic crush and export opportunity, there is a home for every kernel of this canola in the coming year.

November canola keeping bumping on the $545/tonne support area. Will it hold?

<a hreg="http://farms.com/FarmsPages/Markets/tabid/214/Default.aspx?page=chart&sym=RSX11">Nov ICE Canola futures</a>

Three other charts I am watching.

[URL="http://farms.com/FarmsPages/Markets/tabid/214/Default.aspx?page=chart&sym=ZLZ11"]Dec CBT beanoil[/URL]ult.aspx?page=chart&sym=D6U11">loonie& lt;/a>

[charliep]

try the canola link again.

[URL="http://farms.com/FarmsPages/Markets/tabid/214/Default.aspx?page=chart&sym=RSX11"]november canola futures[/URL]

[crusher]

Ya, I bought some today, raining out still, felt like doing something farm related.

[mbratrud]

This is s a tough call this year, good prices now, yet on paper stocks could be tight. When I look at the fields of yellow and the shape they are in, I feel too long. This whole world economic situation is still a cloud looming over us. Spidey senses are confused. If we had todays fundamentals with the optimism of 2007 I think prices would be alot higher than today.

[charliep]

Will add one more chart.

[URL="http://farms.com/FarmsPages/Markets/tabid/214/Default.aspx?page=chart&sym=DXU11&domain=farms&stu dies=Volume;&cancelstudy=&a=D"]US dollar index[/URL]

I suspect US politicians will cut some type of deal to pay the bills. What it will look like is up in the air. Will impact currency relationships and therefore canola prices.

[charliep]

Other canola news.

[URL="http://www.agr.gc.ca/cb/index_e.php?s1=n&s2=2011&page=n110726"]China[/URL]

[btjadenlepp]

I'm in 100% agreement with Mark.

[mbratrud]

Strategy? Beans have stayed strong, I guess if we were really concerned 13.70 Nov Bean puts at .51 cents might be an option. Even save a couple cents on your premium with the strong dollar.

Or sit tight and hope the US gets their shit together at least for another 6 months or so so these markets can develope without the sideshow.