Winnipeg canola put on C$16.70 on the nearby contract overnight. News of a resolution for criminal charges against Huawei Technologies boosted optimism that China and Canada can resolve trade issues around canola exports in the near term. Fancy that, anyone would think canola world stocks are a little low.
Canola coming down to Boggabri silo from the north has so far been very good quality with oil reading around 45%. Excellent news in a year where Australia has a big role to play in filling the void left by reductions in both Europe and Canada. Australia is expected to contribute to a level of around 30% of world trade in export canola this year. An excellent outcome considering current prices.

The Aussie dollar rallied most of the session, closing at 74.7. This will take some of the cream out of commodity prices today. Canola for instance, the change in value between the AUD/CAD alone is worth almost AUD$7.00. Technical traders appear to be building a case for resistance above this level, around 75.31 if the next session is a higher close. Some analyst are going as far as to say at this value the AUD has reached a pivot point. Profit taking overnight did see the trade net long % shrink. This does tend to confirm the consensus that the AUD is getting a little top heavy. Some punters are factoring in a lift in Aussie interest rates around Q4 next year. This is in contrast to what the RBA is saying. The official RBA line at present is suggesting Australia has little chance of seeing a rate hike prior to 2024 unless specific economic growth thresholds are met. The counter argument against the RBA lays with inflation, something we are now seeing due to supply.