CDN$ Down more???

[TOM4CWB]

From my Broker's report this morning...
The Simpson-Caputo Futures Group
Thu 2018-12-27, 6:38 AM..
In part;

"This leads me to believe that CAD$ direction is currently being driven by interest rate expectations vs. direction and sentiment from broader commodity, energy and equity markets
· Over the past few weeks, odds have been paired back for further interest rate hikes in Canada next year
· This has added pressure to the CAD$
· March CAD$ futures are currently trading at 7360 which is the 61.8% retracement from the January 2016 low of 6809 to the September 2017 high of 8010
· A failure to hold here will set up a test of 7253
· We extended hedge coverage for our hedge accounts a few weeks back at 7480
· Will hold for now
· Feb crude oil posted a bullish hook reversal higher yesterday
· First daily resistance is $47.77 and $49.96
· Given the magnitude of the drop and how oversold the market is, I would not hold much faith in these daily levels holding
· I would focus more on weekly resistance which is $55.27
· Feb gold buying support is $1259 and $1249
· March silver buying support is $14.91 and $14.68
· I would be a buyer of gold or silver on pullbacks

Grains and Oilseeds
· Ag prices trading slightly higher in a turnaround Thursday type trade
· Corn up 2 cents, beans up 4 cents, wheat up 1 penny and canola is flat
· Ag prices traded sharply lower yesterday..."

Time to buy some Diesel fuel?
Not near bottom I don't think...
Cheers

[TOM4CWB]

"China plans to remove tariffs on alternative feed meals on January 1, 2019, according to a report by livemint. ****seed meal, cotton meal, sunflower meal and palm meal will no longer be tariffed, but soybeans tariffs will remain in place."

Though they make up a small portion of China's imports, exports believe this is an attempt by Chinese officials to give their feed industry options as the trade war drags on.

From my Broker's report this morning...
The Simpson-Caputo Futures Group
Thu 2018-12-27, 6:38 AM..
In part;

"This leads me to believe that CAD$ direction is currently being driven by interest rate expectations vs. direction and sentiment from broader commodity, energy and equity markets
· Over the past few weeks, odds have been paired back for further interest rate hikes in Canada next year
· This has added pressure to the CAD$
· March CAD$ futures are currently trading at 7360 which is the 61.8% retracement from the January 2016 low of 6809 to the September 2017 high of 8010
· A failure to hold here will set up a test of 7253
· We extended hedge coverage for our hedge accounts a few weeks back at 7480
· Will hold for now
· Feb crude oil posted a bullish hook reversal higher yesterday
· First daily resistance is $47.77 and $49.96
· Given the magnitude of the drop and how oversold the market is, I would not hold much faith in these daily levels holding
· I would focus more on weekly resistance which is $55.27
· Feb gold buying support is $1259 and $1249
· March silver buying support is $14.91 and $14.68
· I would be a buyer of gold or silver on pullbacks

Grains and Oilseeds
· Ag prices trading slightly higher in a turnaround Thursday type trade
· Corn up 2 cents, beans up 4 cents, wheat up 1 penny and canola is flat
· Ag prices traded sharply lower yesterday..."

Time to buy some Diesel fuel?
Not near bottom I don't think...
Cheers

[TOM4CWB]

There may be hope for Wheat yet!!!

"U.S. wheat is facing “imminent collapse” in the Japanese market, and Canada and Australia will be the beneficiaries of its demise, reports The Western Producer.

Japan has been the largest and most valuable U.S. wheat customer over the past five years, but that is about to change, according to U.S. Wheat Associates.

Through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the mark-up on Canadian and Australian wheat will be capped at $148 per tonne as of Dec. 30, 2018, and fall to $140 per tonne as of April 1, 2019.

USW president Vince Peterson said that will put U.S. wheat at a $14 per tonne price disadvantage as of April 1."

"China plans to remove tariffs on alternative feed meals on January 1, 2019, according to a report by livemint. ****seed meal, cotton meal, sunflower meal and palm meal will no longer be tariffed, but soybeans tariffs will remain in place."

Though they make up a small portion of China's imports, exports believe this is an attempt by Chinese officials to give their feed industry options as the trade war drags on.

[errolanderson]

Global commodity price fallout plus China trade tensions eroding loonie. Weekly chart suggests next major support at 72 1/2 cents U.S. without break in trade tensions.

From palm oil to crude oil, major deflationary pressures hammering commodities right now.