Canola traded back and forth in a very choppy session and closed with small losses. Technical selling pressured canola. Losses were limited by the higher soybean complex. Canada’s marketing year to date canola exports now total 5.31 MMT vs. 6.86 MMT at this time last year.
Tuesday’s session had canola trading on both sides of unchanged during the overnight but fell lower throughout the day session and closed solidly lower. Pressure came from the losses in the soybean complex and uncertainty about the US/Iran conflict. Canola futures prices have increased 17% since the beginning of the year due to the run up in crude oil prices. Some analysts believe canola prices will drop as crude oil prices fall when the Iran conflict is over. But others believe the increasing biofuel demand will temper the pullback.
As was the case in the other grains, canola dropped sharply lower at the start of the overnight session Wednesday due to the ceasefire announcement, tried to recover, but ended up closing near the session lows. Pressure came from the steep losses in the crude oil and soybean oil markets. Speculative selling added to the losses. Losses were limited by strong crush margins.
To close out the week Thursday, canola saw small gains overnight and then started adding to the gains in the day session. But midway through the day session the market started to fade but was still able to close with solid gains. Spillover support came from the higher crude oil market. Gains in the soybean complex added support. Gains were limited by weaker crush margins.
Thursday’s cash sunflower bids in Fargo were at $23.95. Cash canola bids in Fargo were at $23.45. Cash bids in Velva were at $22.75.
For the week, May canola was at $704.20 down $22.80 while Nov canola was at $718.50 down $15.30.
Canola/Sunflower Weekly Comments April 10
Canola/Sunflower Weekly Comments April 10
CANOLA/SUNFLOWER
Canola traded back and forth in a very choppy session and closed with small losses. Technical selling pressured canola. Losses were limited by the higher soybean complex. Canada’s marketing year to date canola exports now total 5.31 MMT vs. 6.86 MMT at this time last year.
Tuesday’s session had canola trading on both sides of unchanged during the overnight but fell lower throughout the day session and closed solidly lower. Pressure came from the losses in the soybean complex and uncertainty about the US/Iran conflict. Canola futures prices have increased 17% since the beginning of the year due to the run up in crude oil prices. Some analysts believe canola prices will drop as crude oil prices fall when the Iran conflict is over. But others believe the increasing biofuel demand will temper the pullback.
As was the case in the other grains, canola dropped sharply lower at the start of the overnight session Wednesday due to the ceasefire announcement, tried to recover, but ended up closing near the session lows. Pressure came from the steep losses in the crude oil and soybean oil markets. Speculative selling added to the losses. Losses were limited by strong crush margins.
To close out the week Thursday, canola saw small gains overnight and then started adding to the gains in the day session. But midway through the day session the market started to fade but was still able to close with solid gains. Spillover support came from the higher crude oil market. Gains in the soybean complex added support. Gains were limited by weaker crush margins.
Thursday’s cash sunflower bids in Fargo were at $23.95. Cash canola bids in Fargo were at $23.45. Cash bids in Velva were at $22.75.
For the week, May canola was at $704.20 down $22.80 while Nov canola was at $718.50 down $15.30.