NOVEMBER CANOLA FUTURE:
As with the Minneapolis wheat futures, the rapeseed futures are approaching an overbought state in November. As with spring wheat futures, however, there is nothing to suggest that rapeseed cannot go any higher. With two weeks of steamy temperatures and little rain over the next two weeks, we could see this market building gains even further.
As shown on the monthly chart, rapeseed futures have only recovered to over C $ 485 per ton (mt) for a year. A rally and close above $ 950 in November and the July high of $ 961.80 should take rapeseed to new highs. However, should the weather suddenly get wet, it could see a sharp correction, like Minneapolis’ wheat futures. But the greatest damage is likely to be done.
AUGUST CRUDE OIL FUTURES:
After the OPEC + group’s decision last week to increase crude oil production through September 2022, crude oil futures have now fallen, from a high of $ 77 a barrel in August to Monday’s nearly $ 69 a barrel.
However, the euphoria about lower energy prices may only last for a short time. August crude oil futures are near long-term trendline support at $ 68 and there is key support just below at $ 64-65 a barrel. Momentum indicators are nearing oversold, with the RSI now below 50% and the stochastics down nearly 15%. Look for support for August crude oil futures during the next $ 1-3 decline.
The comments above are for educational purposes and should not be construed as specific trading recommendations. Buying and selling grain and soybean futures involves significant risks and is not suitable for everyone.
Dana Mantini can be reached at: [email protected]
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