Headline News

Howard Leaman                                                     May 24/19


Canola has traded on both sides of unchanged in overnight action with
prices holding close to Thursday's closing levels. Palm oil is lower this
morning, European rapeseed is mixed, and the soy complex is firmer. The
Canadian dollar is up about fifteen one-hundreds of cent against the U.S.

BULL SIDE                               BEAR SIDE
1) Farmer selling of canola is apt to   1) Chinese/Canadian tension 
be limited over the short term as they  continues to overhang the canola
focus on field work rather than         market as China continues to 
marketing their crop.                   boycott Canadian canola. Without  
2) Excessive rain in key U.S. crop      Chinese buying, ending Canadian    
areas have disrupted planting. Talk of  canola stocks are expected to be
unplanted soy acreage and/or reduced    huge. 
yields are lending spillover support    2) Canola is facing strong 
to canola.                              competition from soy and palm oil.
3) Canola planting is almost done in    3) There is still concern that U.S.
western Canada, but the crop is going   corn acreage will be shifted to soy
to need extensive rain soon.            due to this year's late spring.