Howard Leaman Jul 17/19
MIXED TO LOWER
Canola has been mainly on the defensive from the start of overnight trade.
Palm oil, soybeans and soy meal are also lower this morning, European
rapeseed is mixed, and soy oil is firmer. The Canadian dollar is up about a
fifth of a cent against the U.S. dollar.
BULL SIDE BEAR SIDE
1) North American crop conditions are 1) North American crop weather is
improving, but there are still enough improving as dry areas in western
areas of concern to keep some weather Canada receive rain and wet U.S.
premium in the markets. Hot areas turn drier and warmer.
temperatures in U.S. soy growing areas 2) China's boycott of Canadian
are being watched closely. canola continues to overhang canola
2) Key support levels on canola's prices.
price chart held yesterday as traders 3) Spillover selling from soy is
appear to be reluctant to break prices weighing heavily on canola.
out of their consolidation pattern at 4) The longer term technical bias
least until they have a better grip in canola is to the downside.
on the size of this year's crops.
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