Headline News

Howard Leaman                                                     Mch 22/19


Canola has been on the defensive from the start of overnight action. Palm
oil, soybeans and soy oil are also weaker this morning, European rapeseed
is mixed and soy meal is higher. The Canadian dollar is down about five
one-hundreds of a cent against the U.S. dollar. 

BULL SIDE                               BEAR SIDE
1) Commercial buying of canola has      1) Wet weather in the U.S. could   
improved in response to canola's        delay field work and shift acreage
improved competitiveness with other     intended for corn into soy.
vegetable oils.                         2) The more recent independent     
2) Spring road bans in western Canada   strength in canola has curtailed
could limit deliveries of canola.       its price advantage. 
3) Canola posted a bullish technical    3) Ample supply of palm and soy 
move on Thursday, though it has been    oils is keeping a lid on canola.
unable to follow through on it in       4) There continues to be concern  
overnight action. Nonetheless,          that political tension between    
Thursday's action does serve as a       China and Canada will curtail 
reminder of how quickly the market can  Chinese buying of Canadian canola.
bounce.                                 5) Canola has retraced all of 
                                        Thursday's gains.