reprinted with permission:
With a breach seemingly confirmed, Canola looks poised to leg higher on both strong Technicals and Fundamentals, with an increasingly small Canadian crop the new catalyst.
To temper our exceptions though is the fact Beans and Corn are not making – nor even challenging – New Highs. Wheat however has broken out of a Pennant to the upside and we believe will start to challenge its 52-week high in short order.
It will be an interesting Canadian Acre battle next year with Durum and Lentils poised to lose it, making them great Contrarian plays for next year along with Canola as staples but Canola should not to be over-weighted (above 33%) on our farms (in SW Sask) due to the potential for a dry year ahead.