Headline News

Howard Leaman                                                     Sep 16/19

MIXED TO HIGHER

Canola has been mainly stronger in overnight action, with the exception of 
the November 2020 contract. Palm oil, European rapeseed, and soy oil are
higher this morning, but soybeans and soy meal are lower. The Canadian 
dollar is about a fifth of a cent higher against the U.S. dollar. Crude
oil prices are up sharply following the attack on a Saudi Arabia oil plant.

BULL SIDE                               BEAR SIDE
1) This year's late development of      1) Trade tension between China on  
both the Canadian and U.S. crops has    the one hand, and Canada and the
kept some weather premium in the        U.S. on the other, continues to
markets. Though there has not been any  weigh on the oilseed markets.
significant frost damage yet, the       2) Harvest pressure is apt to keep 
potential for damage is being watched   a lid on prices over the short 
closely.                                term. Farmers have large supplies
2) South American soy crop areas need   of canola that they will have to    
rain heading into the planting season.  move in order to find space for 
3) Canola is seeing spillover buying    this year's crop. 
from other oils, including crude oil,   3) The Canadian dollar is up  
this morning.                           against the U.S. dollar this 
                                        morning.