J-MAS is currently 30% sold new crop Canola (about 11bu of a 37 bushel crop) with an $11.76 sales average.
The market is up strongly today and the last week on continued slow development of US crops along with a dry bias as Beans hit the critical filling stage. We respect this rational for moving higher and could easily see this price being the low for the rest of the marketing year if a Frost were to enter the picture in early Sep (and it very well could). However, we have played this game before and if the perceived risk does not manifest into a reality all we got was our typical 38% retracement on its way to lower pricing. Good resistance on both Fib and Previous-Support levels between 514-520 and with an over-exuberant Monday possibly moving towards a Turnaround Tuesday we want to nab this bid today.
NEXT TARGET – is an aggressive play against the potential of an early September frost on a very susceptible Bean crop in the US.
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