$564.20 on the March gives us a spot $12.66 bid into Assiniboia. $532.50 on the November gives us a Sep $11.39 bid into Assiniboia for New Crop.
$$CanolaMPU – Take $12.65 Mar Delivery {564-6Bas} on 15% to be 100% sold (33bu on 33bu crop). Benchmark now 100% sold. At Current Mar $12.65, be 100% sold.
It is a very Bullish signal when Basis narrows while Futures are rising but I still believe in wrapping sales here as a strong move for you to make if you believe in Scale up Selling. The Medium-term downtrend is providing resistance here that I don’t feel we quite have the Fundamentals to break out of yet – as that would signal a move into the teens that seem premature to me right now, plus we are still within range of 61.8% Fib Retracement.
If you believe you have the discipline to ride this up further and sell on a break of the uptrend (possibly 30-50c below the high) that is a good strategy – though I don’t believe many will sell at a price 50c below the high even if that high is 70c above today’s close – and are more likely to ride the downside of this market.
This is the defining principal for Scale up Selling as it takes incredible discipline to utilize a Momentum trading strategy that is typically reserved for Spec Traders who know how to define their risk and are not as emotionally attached to the commodity as a producer is.