Not to be left out of the rally, canola gapped higher to start the week and then added to the gains only to turn lower in the day session and close with losses. Like the rest of the grains, canola followed the sharply higher crude oil market at the start of the overnight session. But as crude trimmed its gains in the day session and the soybean complex turned lower, canola turned lower as well. Profit taking added to the losses.
Tuesday’s session had canola trading on both sides of unchanged in a choppy session and closed with losses. Pressure spilled over from the lower crude and soybean oil markets. Technical selling and the lower Malaysian palm oil and European rapeseed markets added pressure.
Canola slowly climbed higher throughout the overnight session and into the day session Wednesday. The market trimmed gains a bit late in the session but still closed with strong gains. Support came the sharply higher soybean oil market on rumors of friendly numbers in a leak of EPA’s biodiesel blending mandates. Another day of strong gains in the crude oil market added support.
Buying continued to give canola strength to close out the week as canola traded mostly on the higher side in a choppy session and closed with small gains. Early support came from the strong gains in the crude oil market and soybean complex. Ideas that high fertilizer prices will switch acres away from canola added support. But as soybean oil trimmed most of its gains in the day session, it pulled canola off its highs. Profit taking also trimmed today’s gains.
Cash sunflower bids in Fargo were at $23.50. Cash canola bids in Fargo were at $24.00. Cash bids in Velva were at $22.51.
For the week, May canola was at $739.90 up $9.10 while Nov canola was at $734.20 up $8.20.
Canola Weekly Comments March 13
Canola Weekly Comments March 13
Not to be left out of the rally, canola gapped higher to start the week and then added to the gains only to turn lower in the day session and close with losses. Like the rest of the grains, canola followed the sharply higher crude oil market at the start of the overnight session. But as crude trimmed its gains in the day session and the soybean complex turned lower, canola turned lower as well. Profit taking added to the losses.
Tuesday’s session had canola trading on both sides of unchanged in a choppy session and closed with losses. Pressure spilled over from the lower crude and soybean oil markets. Technical selling and the lower Malaysian palm oil and European rapeseed markets added pressure.
Canola slowly climbed higher throughout the overnight session and into the day session Wednesday. The market trimmed gains a bit late in the session but still closed with strong gains. Support came the sharply higher soybean oil market on rumors of friendly numbers in a leak of EPA’s biodiesel blending mandates. Another day of strong gains in the crude oil market added support.
Buying continued to give canola strength to close out the week as canola traded mostly on the higher side in a choppy session and closed with small gains. Early support came from the strong gains in the crude oil market and soybean complex. Ideas that high fertilizer prices will switch acres away from canola added support. But as soybean oil trimmed most of its gains in the day session, it pulled canola off its highs. Profit taking also trimmed today’s gains.
Cash sunflower bids in Fargo were at $23.50. Cash canola bids in Fargo were at $24.00. Cash bids in Velva were at $22.51.
For the week, May canola was at $739.90 up $9.10 while Nov canola was at $734.20 up $8.20.