Canola Basis Update

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Klarenbach Grain Report

Klarenbach Special Crops Report

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The tarot card image seems suitable for today’s post.

Technical analysis is kinda like reading tarot cards.

Or maybe tea leaves.

Some people think it is Bullshit and it is ineffective for stocks and commodities.

Many still think it doesn’t work for low-volume, niche cash markets like Specialty crops.

They are incorrect, but whatever.

In all fairness, Technical Analysis is more of an art than a science, based on probabilities rather than certainties.

But all markets behave the same way, whether people are charting them or using T.A.

Take our Canola Basis charts and analysis, for example. $RS_F ( 0.0% )  

I am unaware of anyone, anywhere, charting Canola Basis and applying technical analysis like we are.

Maybe the large grain companies.

But I am not privy to that information.

But you know what?

Our Canola Basis Index chart behaves in the same manner as every other chart I have looked at.

So why is that?

The simple answer is that human behaviour is the same across all markets.

I believe the charts demonstrate this.

Or maybe we live in a simulation.

At this point, who cares, as long as we can anticipate price action

Remember our October 24 Canola Basis analysis, where we suggested a chart path to follow?

We followed up with a video explainer, as I can get a little too technical.

Anyway, take a look at our updated Canola Basis chart below.

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