To start the week canola opened higher overnight and stayed on the positive side for the first part of the overnight session. But then the market turned lower and added to the losses in the day session to close solidly lower. Pressure came from the lower soybean complex, as well as from the lower European rapeseed and Malaysian palm oil markets. Profit taking added to the losses. Spillover pressure came from the losses in the crude oil market.
Canola was higher overnight but fell lower throughout Tuesday’s day session and closed with losses. Like yesterday, canola was pressured by the losses in the soybean complex. Soybean oil fell to its lowest levels in 3 months. The lower European rapeseed and Malaysian palm oil markets added pressure. Losses were limited by the weaker Canadian dollar which dropped below 70 US cents for the first time since 2020.
In Wednesday’s session canola spent the entire session on the lower side and closed with losses. Pressure came from the sharply lower soybean complex on worries about the future of US biofuel policy as biodiesel blenders tax credits expire on Dec. 31. The steep losses in the Malaysian palm oil and European rapeseed markets added pressure. Losses were limited by strong end user buying and a weaker Canadian dollar.
On Thursday canola saw a slow and steady climb higher through the entire session, closing with solid gains and erasing all of Wednesday’s losses. Support came from the strong gains in the soybean complex. Supply and demand estimates from Ag Canada added support as canola ending stocks were cut from 2.2 MMT to 1.25 MMT.
Thursday’s cash sunflower bids in Fargo were at $20.45. Cash canola bids in West Fargo were at $18.75. Cash canola bids in Velva were at $17.40.
For the week, Jan canola was at $609.10 down $3.40 while March canola was at $613.80 down $10.20.
Canola/Sunflower Weekly Comments Dec 20
Canola/Sunflower Weekly Comments Dec 20
To start the week canola opened higher overnight and stayed on the positive side for the first part of the overnight session. But then the market turned lower and added to the losses in the day session to close solidly lower. Pressure came from the lower soybean complex, as well as from the lower European rapeseed and Malaysian palm oil markets. Profit taking added to the losses. Spillover pressure came from the losses in the crude oil market.
Canola was higher overnight but fell lower throughout Tuesday’s day session and closed with losses. Like yesterday, canola was pressured by the losses in the soybean complex. Soybean oil fell to its lowest levels in 3 months. The lower European rapeseed and Malaysian palm oil markets added pressure. Losses were limited by the weaker Canadian dollar which dropped below 70 US cents for the first time since 2020.
In Wednesday’s session canola spent the entire session on the lower side and closed with losses. Pressure came from the sharply lower soybean complex on worries about the future of US biofuel policy as biodiesel blenders tax credits expire on Dec. 31. The steep losses in the Malaysian palm oil and European rapeseed markets added pressure. Losses were limited by strong end user buying and a weaker Canadian dollar.
On Thursday canola saw a slow and steady climb higher through the entire session, closing with solid gains and erasing all of Wednesday’s losses. Support came from the strong gains in the soybean complex. Supply and demand estimates from Ag Canada added support as canola ending stocks were cut from 2.2 MMT to 1.25 MMT.
Thursday’s cash sunflower bids in Fargo were at $20.45. Cash canola bids in West Fargo were at $18.75. Cash canola bids in Velva were at $17.40.
For the week, Jan canola was at $609.10 down $3.40 while March canola was at $613.80 down $10.20.