Headline News

Howard Leaman                                                     May 25/18


Canola has traded on both sides of unchanged in overnight action with the
bias turning to the downside. Palm oil and soy oil are lower this morning,
European rapeseed is mixed, while soybeans and soy meal are firmer. The
Canadian dollar is down about fifteen one hundreds of a cent against the
U.S. dollar. Trading maybe choppy today ahead of the U.S. long weekend. The
U.S. markets will be closed on Monday for the Memorial Day holiday, but the
ICE Futures Canada market will have normal trading hours.

BULL SIDE                               BEAR SIDE
1) The Canadian dollar is continuing    1) Western Canadian crop areas have
to pull back against the U.S. dollar    received some rain where needed and
after its recent rally.                 other areas that were too wet are
2) Yesterday's action in canola shifts  drying out. There are still areas 
the technical bias to the upside.       of concern, but the crop concerns
3) There continues to be areas of       have eased somewhat.
concern in western Canada with western  2) The U.S. soy crop is off to a   
areas on the wet side, but eastern      good start, and soy continues to   
areas still needing more rain.          provide strong competition for 
4) The trucker strike in Brazil has     canola.
led to talk that the U.S. will pickup   3) Canola looks vulnerable to     
soy market share.                       profit taking.