Headline News

Howard Leaman                                                     Jun 22/17


Canola has been mixed in overnight action. Palm oil is firmer, European
rapeseed is weaker and the soy complex is mixed this morning. The Canadian
dollar has rallied back above $.75 U.S., up about a fifth of a cent.

BULL SIDE                               BEAR SIDE
1) Though North American crop           1) The North American oilseed crops
conditions are generally favourable,    are generally in good shape, and 
there are enough areas of concern to    production could be large.    
keep some weather premium in the        2) The technical bias in canola has
market.                                 turned lower following this week's 
2) Canola has fallen sharply over the   weakness. Follow through selling 
previous couple of trading days, and    has been slow to develop, but it  
is apt to show some bounce today.       could build on itself.
3) The Canadian dollar lost about a     3) The huge South American soy 
third of a cent against the U.S.        crop continues to overhang the     
dollar yesterday, though it is showing  vegetable oil markets.
some bounce today.