Howard Leaman Jul 21/17 MIXED TO LOWER Canola started last night's session on a firmer note, but the bias has turned to the downside. Palm oil and European rapeseed are firmer this morning, but the soy complex is on the defensive. The Canadian dollar is up about a tenth of a cent against the U.S. dollar. Trading in canola could be choppy today as traders move to the sidelines ahead of the weekend. The weather outlook can change dramatically over a couple of days, and no one wants to be on the wrong side of the market. Technically, canola appears to be locked in a narrow consolidation pattern. Stats Can will release its latest estimate of Canadian inflation today which could effect the Canadian dollar and subsequently canola. BULL SIDE BEAR SIDE 1) The weather continues to dominate 1) Some North American crop areas the markets. Hot and dry conditions in are enjoying favourable weather, western Canada and northern U.S. soy and large U.S. soy production is growing areas are providing underlying still a possibility. support. 2) The Canadian dollar continues to 2) Canadian canola supply is tight, strengthen against the U.S. dollar and there is growing talk that this as it rallies towards a fifteen year's crop will not be large enough month high. to rebuild stocks. Accordingly, higher 3) Canola could see spillover prices are needed to ration demand. selling from soy today.