After the long weekend, canola spent all of Tuesday’s session on the higher side and closed with solid gains. Support came from the higher soybean market, as well as from the higher Malaysian palm oil and European rapeseed markets. Rumors of China buying added to the gains. In world news, India looks to produce a record high 12.0 MMT rapeseed crop due to a 5% increase in acres and good growing conditions.
In Wednesday’s session canola was mostly higher overnight but fell lower throughout the day session and closed solidly lower, erasing all of Tuesday’s gains. Pressure came from the steep losses in the soybean complex. The higher Canadian dollar and lower Malaysian palm oil and European rapeseed markets added to the losses. Saskatchewan is working with researchers in ND to develop new sunflower varieties that are better adapted for the province. Saskatchewan had over 61,000 acres of sunflowers in the 1990s but plants less than 8,000 acres now.
On Thursday canola saw good gains for the first half of the overnight session but then started to pull back. The market rebounded early in the day session but then faded again and closed with losses. Support came from rumors of China buying Canadian canola and spread trading. But as the soybean complex fell lower throughout the day session, it pulled canola down with it. The stronger Canadian dollar added to the losses.
Thursday’s cash sunflower bids in Fargo were at $13.00. Cash canola bids in West Fargo were at $20.50. Cash canola bids in Velva were at $19.80.
For the week, March canola was at $572.40 down $5.00 while May canola was at $578.20 down $9.50.