Headline News

Howard Leaman                                                     Feb 23/18


Canola has been mainly firmer in overnight action. Palm oil, European
rapeseed, soybeans and soy oil are also stronger, but soy meal is mixed.
The Canadian dollar is slightly lower against the U.S. dollar. Stats Can
will release its latest inflation report this morning, which could affect
the Canadian dollar and subsequently canola.

BULL SIDE                               BEAR SIDE
1) Concerns about dry conditions in     1) Upward revisions in estimated   
Argentine soy crop areas, and excess    Brazilian soy production and U.S. 
moisture in parts of Brazil continue    soy supply are balancing estimates
to provide underlying support to the    losses in Argentine soy output. 
oilseeds.                               2) A slowdown in Canadian canola  
2) The technical bias in canola is to   exports so far this crop year will
the upside, and any weakness is apt to  likely result in a significant
be seen as a buying opportunity.        build up in stocks. 
3) The Canadian dollar continues to     3) Many traders are looking for   
show a soft tone against the U.S.       record large Canadian canola 
dollar.                                 acreage this spring.