Headline News

Howard Leaman                                                     Jul 19/19


Canola has traded on both sides of unchanged in overnight action, with the
bias turning to the upside. Palm oil is on the defensive this morning,
European rapeseed is mixed, and the soy complex is firmer. The Canadian
dollar is down about a tenth of a cent against the U.S. dollar. Trading in
canola is apt to be choppy today ahead of the weekend given the uncertainty
surrounding North American crop development.

BULL SIDE                               BEAR SIDE
1) North American crop conditions are   1) North American crop weather is  
improving, but there are still enough   continuing to improve and the      
areas of concern to keep some weather   markets are slowly losing their 
premium in the markets.                 weather premiums. 
2) Key support levels on canola's       2) Chinese/Canadian tension  
price chart are holding as traders      continues to overhang the canola    
appear to be reluctant to break prices  market.                         
out of their consolidation pattern at   3) Canola continues to test support
least until they have a better grip     on the price charts. If you keep 
on the size of this year's crops.       hitting the floor eventually it 
                                        will break.