Howard Leaman May 22/19
Canola has traded on both sides of unchanged in overnight action with
prices holding close to Tuesday's closing levels. Palm oil, European
rapeseed, soy oil and soy meal are on the defensive this morning, but
soybeans are firmer. The Canadian dollar is up about a tenth of a cent
against the U.S. dollar.
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) Canola planting is almost done in 3) There is still concern that U.S.
western Canada, but the crop is going corn acreage will be shifted to soy
to need extensive rain soon. due to this year's late spring.
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