Headline News

Howard Leaman                                                     Jly 17/18

     Canola traded on both sides of unchanged again on Tuesday, ending
higher. The market was supported by continued talk that it was oversold and
due for a bounce. Hotter weather in parts of western Canada, with some of
the driest areas missing the rain that is moving through other areas, added
to the buying in canola. The gains were extended by weakness in the
Canadian dollar and spillover buying from soybeans, soy oil, palm oil and
European rapeseed. The Canadian dollar fell below $.76 U.S. on Tuesday,
down about a third of a cent. 
     The buying in canola was curbed by reports of generally favourable
North American crop conditions, talk that canola is still expensive
relative to soy, and talk that prices are not apt to bounce too far before
technical selling returns.

                                   Resistance     Support
               Nov Canola          498.30         484.20
               Jan Canola          503.10         488.40