Headline News

Howard Leaman                                                     Nov 08/19

MIXED TO HIGHER - SUBJECT TO USDA REPORT

Canola has traded on both sides of unchanged in overnight action, with the
bias turning to the upside. Palm oil, European rapeseed, and soy oil are
higher this morning, soybeans are mixed while soy meal is lower. The
Canadian dollar is down about fifteen one-hundreds of a cent against the
U.S. dollar. Canadian labour numbers will be released this morning, which
could affect the Canadian dollar and subsequently canola. The monthly USDA
crop report will be released today which could set the market tone for the
rest of the day if not for the next few days. Trading in canola could be
choppy today ahead of the long weekend. The ICE Futures Canada market will
be closed on Monday for the Remembrance Day holiday. 

BULL SIDE                               BEAR SIDE
1) Canola could show some bounce today  1) Yesterday's weak close in canola 
after yesterday's weak close and ahead  has the short term technical bias 
of the long weekend.                    leaning to the downside. Any bounce
2) Canola is attractively priced        is apt to be widely seen as a    
relative to other vegetable oils,       selling opportunity.        
though commercial buyers have been      2) The North American harvest is  
reluctant to chase prices higher.       progressing, slowly.
3) The Canadian dollar is trending      3) South American soy crop areas 
lower against the U.S. dollar.          have received beneficial rain, and
4) Canola could see spillover buying    the planting progress is now ahead 
from other vegetable oils today.        of its normal pace.