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Howard Leaman                                                     Dec 12/18


Canola started last night's session on a soft note, but has moved slightly
higher. Palm oil and the soy complex are stronger this morning, but
European rapeseed is steady to lower. The Canadian dollar is up about a
tenth of a cent against the U.S. dollar.  

BULL SIDE                               BEAR SIDE
1) Forecasts are calling for hotter     1) Though some traders remain 
and drier weather in Brazilian soy      optimistic that China will buy U.S.
crop areas. The crop is off to a good   soy soon, trade tension between the
start, but traders are apt to keep      two countries continues to overhang
some weather premium in the market.     the vegetable oil markets.    
2) Some traders remain optimistic that  2) The South American soy crop is
China will buy U.S. soy soon, and that  enjoying favourable conditions, and
is supporting the vegetable oil         huge production is expected to come
markets.                                onto the market sooner than normal
3) Canola could see spillover buying    this year.
from soy today.                         3) The Canadian dollar is showing
4) Technically, canola could show some  some bounce against the U.S. dollar
bounce after yesterday's weakness.      this morning.

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