Canola ended Monday’s session mixed with small gains in May, small losses in July, and better gains in the new crop contracts. Strong demand in both the export and domestic markets supported canola. But the sharply lower soybean oil market limited gains.
In Tuesday’s session canola saw small gains overnight and added to the gains in the day session to close solidly higher. Very tight stocks and the need to ration demand supported the front month contracts. New crop contracts saw gains of less than $1.00. Spillover support came from the sharply higher soybean oil market on much lower than expected stocks in the March NOPA crush report.
On Wednesday canola gapped lower at the start of the overnight session, but the market got back on the positive side halfway through the overnight session. Canola was able to hold those gains in the day session and closed with decent gains. Support came from strong demand and concerns that Stats Canada’s 2024/25 production estimate is too high, which would make stocks even tighter. Light support came from gains in the soybean complex. Gains were limited by the stronger Canadian dollar.
Wednesday’s cash sunflower bids in Fargo were at $26.50. Cash canola bids in West Fargo were at $22.00. Cash canola bids in Velva were at $20.61.
For the week, May canola was at $667.90 up $7.20 while July canola was at $675.70 up $6.90.
Canola/Sunflower Weekly Comments April 17
Canola/Sunflower Weekly Comments April 17
Canola ended Monday’s session mixed with small gains in May, small losses in July, and better gains in the new crop contracts. Strong demand in both the export and domestic markets supported canola. But the sharply lower soybean oil market limited gains.
In Tuesday’s session canola saw small gains overnight and added to the gains in the day session to close solidly higher. Very tight stocks and the need to ration demand supported the front month contracts. New crop contracts saw gains of less than $1.00. Spillover support came from the sharply higher soybean oil market on much lower than expected stocks in the March NOPA crush report.
On Wednesday canola gapped lower at the start of the overnight session, but the market got back on the positive side halfway through the overnight session. Canola was able to hold those gains in the day session and closed with decent gains. Support came from strong demand and concerns that Stats Canada’s 2024/25 production estimate is too high, which would make stocks even tighter. Light support came from gains in the soybean complex. Gains were limited by the stronger Canadian dollar.
Wednesday’s cash sunflower bids in Fargo were at $26.50. Cash canola bids in West Fargo were at $22.00. Cash canola bids in Velva were at $20.61.
For the week, May canola was at $667.90 up $7.20 while July canola was at $675.70 up $6.90.