Headline News

Howard Leaman                                                     Nov 09/18


Canola has traded on both sides of unchanged in overnight action, with the
bias turning to the downside. Palm oil, soybeans and soy oil are lower this
morning, but European rapeseed and soy meal are firmer. The Canadian dollar
is down about a fifth of a cent against the U.S. dollar. Trading in canola
could be choppy 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 prices continue to find some  1) South American crop weather is
support on the price charts and         generally favourable, and many    
traders appear to be reluctant to push  traders are looking for record     
prices significantly lower for now.     large soy production this year.
2) There continues to be some           2) The technical bias in canola is 
uncertainty surrounding the size and    clearly to the downside, and any   
the quality of this year's Canadian     bounce is apt to be widely seen as
canola crop. Analysts are lowering      a selling opportunity. 
their estimates of output.              3) Ample supply of palm and soy    
3) The Canadian dollar has dropped      oils are providing strong       
below $.76 U.S. this morning.           competition for canola.