To start the week canola gapped higher at the start of the overnight session, saw the session high late in the day session, but then faded a bit. The market still closed with strong gains. Support came from the sharply higher soybean oil market which ended the session at or near the expanded limit of $4.50. Friday’s friendly EPA biofuels announcement was supportive as it could increase Canadian canola oil exports to the US. Even if Canadian canola oil is excluded from use in US biofuels, that canola oil would likely be used on the food side. Canada’s crush capacity is expected to expand to 14 MMT this year while production estimates for Canadian canola sit around 17.5 MMT.
In Tuesday’s session canola opened lower overnight then traded in a tight range on either side of unchanged. The market added to the gains in the day session and closed with decent gains. Support came from the gains in the Malaysian palm oil and European rapeseed. Light support came dry conditions in the Canadian Prairies and traders’ skepticism about rain in the forecasts. Spillover support came from the sharply higher crude oil market. Gains were limited by the lower soybean oil market.
Canola spent most of Wednesday’s session on the higher side only to fade late in the day session and closed with losses. Most of the recent gains in the canola market can be attributed to the rally in the soybean oil market and as that market was quiet, canola took the path of least resistance lower. Rains in the forecast for the Canadian Prairies added pressure. Stats Canada will release its acreage report on June 27. Their last estimate of canola planted acres was at 21.6 million back in March.
Wednesday’s cash sunflower bids in Fargo were at $28.75. Cash canola bids in West Fargo were at $23.40. Cash canola bids in Velva were at $22.50.
As of June 15, 78% of the nation’s sunflower crop was planted vs. 58% last week and 78% average. 89% of North Dakota’s sunflowers had been planted vs. 75% last week and 83% average.
As of June 15, 96% of North Dakota’s canola had been planted vs. 94% last week and 97% average. Emergence was at 70% vs. 49% last week and 76% average. Canola’s crop condition rating was 61% g/e, 34% fair, and 5% p/vp.
For the week, July canola was at $743.60 up $12.60. Nov canola was at $742.70 up $19.50.
Canola/Sunflower Weekly Comments June 20
Canola/Sunflower Weekly Comments June 20
To start the week canola gapped higher at the start of the overnight session, saw the session high late in the day session, but then faded a bit. The market still closed with strong gains. Support came from the sharply higher soybean oil market which ended the session at or near the expanded limit of $4.50. Friday’s friendly EPA biofuels announcement was supportive as it could increase Canadian canola oil exports to the US. Even if Canadian canola oil is excluded from use in US biofuels, that canola oil would likely be used on the food side. Canada’s crush capacity is expected to expand to 14 MMT this year while production estimates for Canadian canola sit around 17.5 MMT.
In Tuesday’s session canola opened lower overnight then traded in a tight range on either side of unchanged. The market added to the gains in the day session and closed with decent gains. Support came from the gains in the Malaysian palm oil and European rapeseed. Light support came dry conditions in the Canadian Prairies and traders’ skepticism about rain in the forecasts. Spillover support came from the sharply higher crude oil market. Gains were limited by the lower soybean oil market.
Canola spent most of Wednesday’s session on the higher side only to fade late in the day session and closed with losses. Most of the recent gains in the canola market can be attributed to the rally in the soybean oil market and as that market was quiet, canola took the path of least resistance lower. Rains in the forecast for the Canadian Prairies added pressure. Stats Canada will release its acreage report on June 27. Their last estimate of canola planted acres was at 21.6 million back in March.
Wednesday’s cash sunflower bids in Fargo were at $28.75. Cash canola bids in West Fargo were at $23.40. Cash canola bids in Velva were at $22.50.
As of June 15, 78% of the nation’s sunflower crop was planted vs. 58% last week and 78% average. 89% of North Dakota’s sunflowers had been planted vs. 75% last week and 83% average.
As of June 15, 96% of North Dakota’s canola had been planted vs. 94% last week and 97% average. Emergence was at 70% vs. 49% last week and 76% average. Canola’s crop condition rating was 61% g/e, 34% fair, and 5% p/vp.
For the week, July canola was at $743.60 up $12.60. Nov canola was at $742.70 up $19.50.