After beans capitulated last week (after a big intraday rally) we thought we were vulnerable to a further sell off and that?s what we got. Beans traded down another 10US?/bu but then bounced with support found from outside markets and uncertainty over Sth American crop conditions. This week we will see more interest from the Chinese buyers as they look to increase their coverage after their holidays and technically we will target a close into the high 960?s (US?/bu) to give us a kick along. The weight of Brazilian farmer selling will slow us in a rally, unless weather and logistics preclude them from doing so, as will the overwhelming size of the bean crop and ability for the meal to find its way into the market. Over the last few weeks the meal story has continued to weigh on beans in particular, with oil share having jumped from as low as 30% during mid 2009 and from 38% earlier in the year to more than 42% today. Stronger oilshare will support canola prices relative to soybeans because of canola?s higher oil content. The rally has been fueled by reserve vegoil buying in China and India, strong biodiesel mandates in Sth America and Europe, a small global sunseed crop, less Palm oil coming on to the market and buying as an inflation hedge. Meal on the other hand has been pressured recently by the volume of supply expected to come from the market ex-Sth America. Bean oil in Sth America is not having the same problem because of the strong biodiesel demand there and much more beneficial export tax structure for biodiesel vs soy oil. The other one to watch at the moment as far as canola goes is Chinese production. Talk of drought is starting to creep in across one of their main rapeseed provinces, which could add further support.