Canola started the week by trading on both sides of unchanged overnight and then climbed higher throughout the day session and closed with solid gains. Support came from the gains in the European rapeseed and Malaysian palm oil markets. Spillover support came from the sharply higher crude oil market. Gains were limited by the stronger Canadian dollar. While Stats Canada lowered their production estimate by 1.1 MMT to 17.8 MMT, USDA is sitting at 20.0 MMT and traders will be watching for USDA’s updated numbers on Tuesday.
In Tuesday’s session canola fell lower throughout the overnight session but turned things around in the day session, erasing all of the losses and closing with small gains. Support came from the gains in the soybean market and weaker Canadian dollar. Slow farmer selling added support. One private analyst predicts that farmers won’t start selling until canola hits the $640.00 level. USDA lowered their estimate for Canada’s canola production by 1.1 MMT to 18.8 MMT. But that is still 1.0 MMT higher than Stat’s Canada’s current estimate of 17.8 MMT.
Canola opened higher overnight but soon turned lower. The market was able to rebound in the day session and closed with small gains on Wednesday. Light support came from the small gains in the soybean and European rapeseed markets. Spillover support came from the sharply higher crude oil market. Canadian canola exports to China in October totaled 887,000 MT as buyers stock up before China’s anti-dumping investigation is completed.
On Thursday canola dropped sharply lower at the start of the overnight session but got back on the positive side late in the overnight session. The market held those gains until late in the day session when the market turned lower and closed with losses. Pressure came from worries of a possible trade war between Canada and the US. In 2023 Canda exported 2.8 MMT of canola oil to the US, worth $8.6 billion in Canadian dollars and 90% of Canada’s total canola oil exports. Prime Minister Trudeau met with provincial premiers to discuss incoming President Trump’s tariff threats. Several premiers urged Trudeau to impose retaliatory tariffs. Losses were limited by the gains in the soybean oil and Malaysian palm oil markets.
Thursday’s cash sunflower bids in Fargo were at $20.00. Cash canola bids in West Fargo were at $19.40. Cash canola bids in Velva were at $18.15.
For the week, Jan canola was at $612.50 up $3.50 while March canola was at $624.00 up $6.40.
Canola/Sunflower Weekly Comments Dec 13
Canola/Sunflower Weekly Comments Dec 13
Canola started the week by trading on both sides of unchanged overnight and then climbed higher throughout the day session and closed with solid gains. Support came from the gains in the European rapeseed and Malaysian palm oil markets. Spillover support came from the sharply higher crude oil market. Gains were limited by the stronger Canadian dollar. While Stats Canada lowered their production estimate by 1.1 MMT to 17.8 MMT, USDA is sitting at 20.0 MMT and traders will be watching for USDA’s updated numbers on Tuesday.
In Tuesday’s session canola fell lower throughout the overnight session but turned things around in the day session, erasing all of the losses and closing with small gains. Support came from the gains in the soybean market and weaker Canadian dollar. Slow farmer selling added support. One private analyst predicts that farmers won’t start selling until canola hits the $640.00 level. USDA lowered their estimate for Canada’s canola production by 1.1 MMT to 18.8 MMT. But that is still 1.0 MMT higher than Stat’s Canada’s current estimate of 17.8 MMT.
Canola opened higher overnight but soon turned lower. The market was able to rebound in the day session and closed with small gains on Wednesday. Light support came from the small gains in the soybean and European rapeseed markets. Spillover support came from the sharply higher crude oil market. Canadian canola exports to China in October totaled 887,000 MT as buyers stock up before China’s anti-dumping investigation is completed.
On Thursday canola dropped sharply lower at the start of the overnight session but got back on the positive side late in the overnight session. The market held those gains until late in the day session when the market turned lower and closed with losses. Pressure came from worries of a possible trade war between Canada and the US. In 2023 Canda exported 2.8 MMT of canola oil to the US, worth $8.6 billion in Canadian dollars and 90% of Canada’s total canola oil exports. Prime Minister Trudeau met with provincial premiers to discuss incoming President Trump’s tariff threats. Several premiers urged Trudeau to impose retaliatory tariffs. Losses were limited by the gains in the soybean oil and Malaysian palm oil markets.
Thursday’s cash sunflower bids in Fargo were at $20.00. Cash canola bids in West Fargo were at $19.40. Cash canola bids in Velva were at $18.15.
For the week, Jan canola was at $612.50 up $3.50 while March canola was at $624.00 up $6.40.