Howard Leaman Jan 21/19 HIGHER Canola has traded on both sides of unchanged in overnight action, with the bias turning to the upside. Palm oil is stronger this morning, while European rapeseed is steady to lower. The Canadian dollar is down about a tenth of a cent against the U.S. dollar. Trading in canola could be choppy today with the U.S. markets closed for the Martin Luther King Jr. holiday. BULL SIDE BEAR SIDE 1) Hot and dry weather in parts of 1) The South American soy crop may Brazil and excess moisture in parts of not be as large as had been Argentina continue to raise concerns expected, but it is still large, that the South American soy crop will and early harvested supply is about be significantly smaller than was to come onto the market. previously expected. 2) After three days of solid gains, 2) Canola continued its bounce last canola looks vulnerable to profit Friday, posting solid gains for the taking. Last Friday's high appears third day in a row. That continues to to have stalled near resistance on shift the short term technical bias to the price charts. the upside. 3) Canadian/Chinese tension is 3) The Canadian dollar is down against raising concerns that Chinese the U.S. dollar this morning. buying of Canadian canola could be 4) Cold temperatures in western Canada curtailed. could discourage canola deliveries.