Headline News

Howard Leaman                                                     Jan 24/20

MIXED TO LOWER

Canola has traded on both sides of unchanged, with the bias turning to the
downside. Palm oil, European rapeseed, soybeans and soy oil are all lower
this morning while soy meal is mixed to lower. The Canadian dollar is down
about a tenth of a cent against the U.S. dollar, trading about a tenth of a
cent above $0.76. Stats Can will release its recent retail sales data today
which could influence the Canadian dollar and subsequently canola. 

BULL SIDE                               BEAR SIDE
1) Though South American crop           1) South American crop conditions
conditions are generally favourable,    are generally favourable as the
traders are watching dry conditions in  Brazilian soy harvest starts to   
some areas, while excess rain in other  pickup. Record large production is
areas may delay the early soy harvest.  possible. 
2) Canola fell sharply yesterday and    2 This week's Meng Wanzhou
is starting to look oversold. Prices    extradition hearing will highlight
could bounce ahead of the weekend.      the strained Chinese/Canadian
3) The Canadian dollar is back on the   relations that have been weighing 
defensive against the U.S. dollar       on the canola market. 
after yesterday's bounce.               3) Canola could see spillover 
                                        selling from other markets today.