Headline News


Howard Leaman                                                     Jan 21/19

HIGHER

Canola has traded on both sides of unchanged in overnight action, with the
bias turning to the upside. Palm oil is stronger this morning, while
European rapeseed is steady to lower. The Canadian dollar is down about a
tenth of a cent against the U.S. dollar. Trading in canola could be choppy
today with the U.S. markets closed for the Martin Luther King Jr. holiday.

BULL SIDE                               BEAR SIDE
1) Hot and dry weather in parts of      1) The South American soy crop may
Brazil and excess moisture in parts of  not be as large as had been
Argentina continue to raise concerns    expected, but it is still large,
that the South American soy crop will   and early harvested supply is about
be significantly smaller than was       to come onto the market.
previously expected.                    2) After three days of solid gains, 
2) Canola continued its bounce last     canola looks vulnerable to profit 
Friday, posting solid gains for the     taking. Last Friday's high appears
third day in a row. That continues to   to have stalled near resistance on
shift the short term technical bias to  the price charts. 
the upside.                             3) Canadian/Chinese tension is 
3) The Canadian dollar is down against  raising concerns that Chinese 
the U.S. dollar this morning.           buying of Canadian canola could be
4) Cold temperatures in western Canada  curtailed. 
could discourage canola deliveries.