Canola in Short Supply?
April 11, 2016
Cracks in local coverage have started to appear as different locations have posted random opportunities from spot pricing into May/June. This indicates that basis levels could tighten up as we head into seeding and early summer. July futures have run into resistance at $490/MT, but seems to have lost some momentum and needs more from the fundamentals to continue to drive higher. Near term support at $475/MT could be tested as the market recoils, waiting for the next set of information to give direction.