Howard Leaman - hleaman@cogeco.ca                                 Sep 07/09

MIXED

Traders are apt to be reluctant to push prices too far in either direction
today ahead of this week's government reports. On Wednesday, Stats Can will
release its July 31st stocks report, and on Friday the USDA will release
its monthly crop report. A mixed note in soy and palm oil is contributing
to the lack of direction in canola. The Canadian dollar is down about half
of a cent against the U.S. dollar this morning, which normally would be
supportive for canola, but the losses in the dollar maybe erased later
today as traders in that market move to the sidelines ahead of tomorrow's
Bank of Canada decision on interest rates.

BULL SIDE                               BEAR SIDE 
1) Crop concerns are having an          1) Resistance on the price charts 
increasing impact on prices as the      is apt to keep a lid on canola 
harvest delays in western Canada        prices. 
become more significant. Wet weather    2) There is a lack of new, 
has combined with cold temperatures to  non-routine exporter buying of
raise widespread concerns about         canola. 
potential frost damage.                 3) Though there are areas of 
2) Steady crusher buying continues to   concern, forecasts are calling for
provide underlying support to canola.   seasonal to warm temperatures in
                                        much of western Canada.