Canola and Soybean charts

[Fransisco]

So I'm looking at the the weekly canola chart to see where the resistance line might be as this market keeps grinding lower.

<a href="http://futuresource.quote.com/charts/charts.jsp?s=RS%201%21-WC&o=&a=W&z=610x300&d=MEDIUM&b=BAR&st="> Weekly canola chart</a>

Looks like we're at what should be a pretty solid resistance point right now.

Then I take a look at the weekly soybean chart.

<a href="http://futuresource.quote.com/charts/charts.jsp?s=zs 1%21&a=D&d=MEDIUM&b=BAR">weekly soybean chart</a>

And my heart sinks cause it looks like it could drop another buck. Which no doubt would drag canola along for the ride.

Then there is soybean oil

<a href="http://futuresource.quote.com/charts/charts.jsp?s=BO%201%21&o=&a=W&z=610x300&d=MEDIUM&b =BAR&st=">Weekly soybean oil</a>

It's got room to move down as well before hitting the big resistance line.

Don't know who's selling canola at today's prices but it looks like lots of guys still are. Things keep up like this and we'll be at 8 bucks before you know it.

This harvest-big crop pressure really sucks the sweat off a dead mans balls.

[Fransisco]

Maybe the 8.80 to 9 dollar line on soybeans will hold. But I'm not overly confident in it at this point.

[charliep]

On the positive side, LDC/Mitsui will be opening their Yorkton canola crushing plant in November. This will push domestic crush capacity to over 5 mln tonnes. Realizing the survey was done in early Sept, the October 2 statcan release will give an indication of which side of 10 mln tonnes canola is on (likely plus side). There are markets for 100 % of a crop this size in 2009/10.

[URL="http://www.albertafarmexpress.ca/issues/ISArticle.asp?aid=1000341669&PC=FBC&issue=09232009 "]yorkton[/URL]

[fjlip]

Farms.com marketing adviser said never price any crop July to Feb. Historical low prices in those months. If you need cash flow forward price outside that time frame. Hope the deliveries you see are not at these prices. Just need to wait till Feb now. Farm storage is another tool.