Howard Leaman Sep 24/18
MIXED TO LOWER
Canola has been mixed in overnight action with the November contract on the
defensive, but the July position is holding steady. Palm oil is firmer this
morning, soy oil is steady, while European rapeseed, soybeans and soy meal
are weaker. The Canadian dollar is down about a tenth of a cent against the
BULL SIDE BEAR SIDE
1) Less than favourable weather in 1) U.S. soy conditions are
parts of western Canada is delaying generally favourable, and record
the harvest and threatening the large production is expected.
quality of the canola crop. 2) Canola remains very expensive
2) Canola ended last week on a strong relative to soy.
note, supporting the view that the 3) Chinese/U.S. trade tension
market has found technical support on continues to overhang the soy
the price charts. market, causing spillover selling
3) Though the soy complex has to canola.
struggled in last night's session, the 4) So far talk of increased Chinese
market does look like it can show some buying of Canadian canola to
bounce that could lend spillover replace U.S. soy has been nothing
support to canola. but talk.
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