We have to respect the Very Bullish Price action after a Neutral-Bearish report that had a Bullish bias priced in.
The market bought the “rumour” over the last 3 weeks and should have sold off when the expectations were not confirmed. Instead, we saw a significant move higher today across the Grain space.
This is the exact type of Price Action we want to see to gauge the strength of the rally as Market Participants buy weakness.
All signs point to significant upside remaining – likely a challenge of the May Highs. The only sentiment changer I see from now until we make that challenge would be a Peaceful resolution to the Iran situation or the onset of Seeding.
In the case of Canola, we could see $560 on the Nov (near the $12.00 mark). For everything else, we will want to hold off on sales and ride the Canola wave until it breaks. Then we will look to sell Pea, Lentil, Flax & Durum as they will be delayed in following Canola lower once it breaks, giving us a good sales window..