Harvest in Canada go time

Top 3 – Things to Watch this week:

1. In the USA, Hot & dry weather likely curbed production of both soybeans and corn. However, don’t expect any bullish reports until harvest is complete.

2. India is poised for its lowest monsoon rains in eight years, with the El Niño weather pattern. Remember India is 2nd largest wheat producer. India has already banned exports of certain types of rice. Perception is that India is having some production difficulties.

3. Canadian harvest is in full swing.  Except for the Palliser Triangle, the yields are better than expected. Putting the pieces together it sounds like yield are below average, but not low enough to claim insurance.

This week’s Action Item:

Oat Futures have been on a terror towards the upside. It seems as if millings oats have run short. This could be very short lived as Saskatchewan Oat harvest is only days away.

Chart:

Oats is at 4.81 which is a retracement. Technically this is a good time for a sale.