So much for the canola party!
Oilseeds have taken a rather severe beating in the last week. Here’s the ugliness up close.
But don’t worry, or maybe do worry, because it isn’t an overwhelming vote against oilseeds by the world market. Here’s the CRB index of all commodities:
The commodity party has been over for a while, with substances like oil dropping markedly and metals dropping down. European debt, China slowdown, yadda yadda yadda. We really shouldn’t be surprised that canola would eventually submit to the downdraft eventually. Corn and wheat have felt it for a while.
So we’re in a commodity downdraft and it’s sucking the wind out of the crop sails.
The good aspect is that this is happening right at the beginning of the crop weather market, where some weather scare could drive crop prices up again, regardless of general commodity complex conditions.
