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Howard Leaman - hleaman@cogeco.ca Sep 03/09
HIGHER
Profit taking weighed on canola yesterday, but the market is rebounding in
overnight action. Trading could be choppy today as traders move to the
sidelines ahead of the long weekend and next week's government reports.
Both Canadian and U.S. markets will be closed on Monday for the Labour Day
holiday. Next Wednesday, Stats Can will release its July 31st stocks
report, and on next Friday the USDA will release its monthly crop report.
Chances are traders will be reluctant to push prices out of their current
tight trading range ahead of the weekend. The Canadian dollar is down
slightly this morning, but that could change when the U.S. unemployment
report is released this morning.
BULL SIDE BEAR SIDE
1) Crop concerns are having an 1) Resistance on the price charts
increasing impact on prices as the is apt to keep a lid on canola
harvest delays in western Canada prices. Talk that canola is over
become more significant. Wet weather bought could return quite quickly.
has combined with cold temperatures to 2) There is a lack of new,
raise widespread concerns about non-routine exporter buying of
potential frost damage. canola.
2) Steady crusher buying continues to 3) Harvest pressure is coming
provide underlying support to canola. eventually.
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