Howard Leaman Jan 23/19
Canola has been mainly on the defensive in overnight action. Palm oil is
also on the defensive, but European rapeseed and the soy complex is mainly
firmer. The Canadian dollar is up about a fifth of a cent against the U.S.
BULL SIDE BEAR SIDE
1) Hot and dry weather in parts of 1) The South American soy crop may
Brazil and excess moisture in parts of not be as large as had been
Argentina continue to raise concerns expected, but it is still large,
that the South American soy crop will and the crop is coming onto the
be significantly smaller than was market earlier than normal.
previously expected. 2) Canadian/Chinese tension is
2) The technical bias in canola raising concerns that Chinese
continues to shift to the upside. Any buying of Canadian canola could be
weakness is apt to be widely seen as a curtailed.
buying opportunity. 3) The Canadian dollar is showing
3) Commercial buying of canola is some bounce against the U.S. dollar
expected to increase as canola crush this morning.
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