Headline News

Howard Leaman                                                     Sep 21/18


Canola has been mixed in overnight action. Palm oil, European rapeseed and
the soy complex are all on the defensive this morning. The Canadian dollar
is down about five one-hundreds of a cent against the U.S. dollar.   

BULL SIDE                               BEAR SIDE
1) Less than favourable weather in      1) U.S. soy conditions are 
parts of western Canada is delaying     generally favourable, and record   
the harvest and threatening the         large production is expected.
quality of the canola crop.             2) Canola remains very expensive 
2) Canola ended yesterday on a strong   relative to soy.            
note, supporting the view that the      3) So far, China has not increased  
market has found technical support on   its canola buying in order to   
the price charts.                       replace reduced U.S. soy purchases.
3) Though the soy complex has           4) Though the rally in the Canadian
struggled in last night's session, the  dollar has paused, it is still up  
market does look like it can show some  significantly against the U.S. 
bounce that could lend spillover        dollar compared to levels seen in
support to canola.                      early September.