Howard Leaman May 27/19
MIXED TO LOWER
Canola has traded on both sides of unchanged in overnight action with
prices holding close to last Friday's closing levels. Palm oil is showing
some bounce this morning, and European rapeseed is steady to higher. The
soy complex is closed today due to the Memorial Day holiday. The Canadian
dollar is steady against the U.S. dollar. Trading in canola is expected to
be choppy today with the U.S. markets closed.
BULL SIDE BEAR SIDE
1) Farmer selling of canola is apt to 1) Chinese/Canadian tension
be limited over the short term as they continues to overhang the canola
focus on field work rather than market as China continues to
marketing their crop. boycott Canadian canola. Without
2) Excessive rain in key U.S. crop Chinese buying, ending Canadian
areas have disrupted planting. Talk of canola stocks are expected to be
unplanted soy acreage and/or reduced huge.
yields are lending spillover support 2) Canola is facing strong
to canola. competition from soy and palm oil.
3) Dry weather in parts of western 3) There is still concern that U.S.
Canada continue to raise concerns corn acreage will be shifted to soy
about reduced canola production. due to this year's late spring.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.