The Loonie and Oil Headed Higher

[charliep]

Just a note to highlight the fact the loonie has cracked 77 cents today. Oil has broken $48/barrel as well. Interesting times ahead outside of ag markets. Implications?

[carebear300]

The increase in the price of oil again will just add to inflationary pressures in the economy so I would bet that there is no doubt that interest rates will start increasing steadily over the next couple of years not a good thing for farmers. At the same time the price of fuel and all petroleum based agricultural inputs will rise again not a good thing for farmers. Loonie rising will be just another factor keeping the price of our saleable products down, again not a good thing for farmers. Hope that I am just way to negative and exactly the opposite happens, and that is the world finally realizes that food is super cheap in respect to all other commodities and that will give us an unprecedented rise in prices that we receive for them. Likely non of the above will happen and something somewhere between both extremes will be what happens. My opinion for what it is worth. Hoping that it gets dry enough and hot enough to combine some peas this afternoon.

[charliep]

Thought I would put a couple of charts for participants to review.

http://futures.tradingcharts.com/chart/CD/M

http://futures.tradingcharts.com/chart/CO/M

[crusher]

I just ordered some diesel and it was up 10% from my last fill three weeks ago.

I don't think we have had a damaging frost on our farm yet (Fort Saskathewan. My past experience with subzero temperatures on canola led to reduced yields and #2 & 3 grade. I see the markets are reacting and blew through $340 resistance and the moving averages without any difficulty. Also ADM Lloydminister and Cargill Edmonton were bidding up old crop stocks this week. Is this a selling opportunity or the break in the downtrend? I sold a little just in case it is only a bounce. We will need more bullish news out of the bean crop to sustain this rally. Would be nice to see bean oil rally like crude oil - who knows?