Bernanke just left the stage and left us with a very well timed announcement for Canola (and all commodities in general) as it was near Resistance at 52-week high territory already and this has pushed it through in the last 60 minutes.
With possibly another 1bu shaved off the national Canola average due to massive wind damage over last 3 days in the north also adding support, we watch closely for a close above 645 on the Nov (currently 647) and a hold of that level tomorrow. If so, we will be considering new targets near or above $15/bu and believe that $16 is in play at some point down the road.
NOTE – Beans/Corn have not responded today to the Fed news while Oil and the S&P have significantly along with Canola. It may mean some Fund money is shifting out of an already profitable Long and into the Energy sector which has a lot of upside potential. Not necessarily Bearish, especially over the Medium-Long term but could spark a few weeks of profit taking in the US Grains as we feared ahead of the USDA and this partially priced QE3 move.
