To start the week canola gapped higher at the start of the overnight session, turned lower early in the day session but then quickly rebounded and closed with solid gains. Support came from the strong gains in the soybean complex. Spillover support came from the sharply higher crude oil markets. Technical buying added to the gains as the March contract went above its 200-day moving average.
Canola traded mostly on the lower side on Tuesday and closed with losses, erasing just about all of Monday’s gains. Pressure came from the lower soybean and Malaysian palm oil markets. Profit taking added to the losses. Losses were limited by tight supplies of Canadian canola.
In Wednesday’s session canola traded in a tight range on either side of unchanged overnight and saw gains in the day session until noon when the market dropped sharply lower. Canola was able to trim the losses a bit before the close but still closed solidly lower. Pressure came from uncertainty about President Trump’s tariff intentions when he takes office on Monday. The Canadian government announced new border security measures today, partly to stave off Trump’s tariff threats. The Canadian government approved Bunge’s acquisition of Viterra yesterday. Farm groups opposed the deal on the grounds it would weaken competition in the canola crush markets in Manitoba and Saskatchewan.
Canola fell lower throughout Thursday’s session and closed sharply lower, with the market at its lowest levels in the past 3 weeks. Pressure came from the steep losses in the soybean complex and technical selling. The lower European rapeseed and Malaysian palm oil markets added to the losses.
Thursday’s cash sunflower bids in Fargo were at $22.50. Cash canola bids in West Fargo were at $19.30. Cash canola bids in Velva were at $17.74.
For the week, March canola was at $616.00 down $25.60 while May canola was at $625.50 down $25.10.
Canola/Sunflower Weekly Comments January 17
Canola/Sunflower Weekly Comments January 17
To start the week canola gapped higher at the start of the overnight session, turned lower early in the day session but then quickly rebounded and closed with solid gains. Support came from the strong gains in the soybean complex. Spillover support came from the sharply higher crude oil markets. Technical buying added to the gains as the March contract went above its 200-day moving average.
Canola traded mostly on the lower side on Tuesday and closed with losses, erasing just about all of Monday’s gains. Pressure came from the lower soybean and Malaysian palm oil markets. Profit taking added to the losses. Losses were limited by tight supplies of Canadian canola.
In Wednesday’s session canola traded in a tight range on either side of unchanged overnight and saw gains in the day session until noon when the market dropped sharply lower. Canola was able to trim the losses a bit before the close but still closed solidly lower. Pressure came from uncertainty about President Trump’s tariff intentions when he takes office on Monday. The Canadian government announced new border security measures today, partly to stave off Trump’s tariff threats. The Canadian government approved Bunge’s acquisition of Viterra yesterday. Farm groups opposed the deal on the grounds it would weaken competition in the canola crush markets in Manitoba and Saskatchewan.
Canola fell lower throughout Thursday’s session and closed sharply lower, with the market at its lowest levels in the past 3 weeks. Pressure came from the steep losses in the soybean complex and technical selling. The lower European rapeseed and Malaysian palm oil markets added to the losses.
Thursday’s cash sunflower bids in Fargo were at $22.50. Cash canola bids in West Fargo were at $19.30. Cash canola bids in Velva were at $17.74.
For the week, March canola was at $616.00 down $25.60 while May canola was at $625.50 down $25.10.