To start the week canola dropped sharply lower early in the overnight session but then was able to trim the losses as the session continued to close around $3 lower. Pressure came from the lower soybean and soybean oil markets and the sharply lower crude oil market. Technical selling added pressure. Losses were limited by the weaker Canadian dollar.
In Tuesday’s session canola climbed higher throughout the overnight session, trimmed the gains a bit in the day session but still closed solidly higher. Canola also saw support from the 45Z tax credit guidelines as they limit feedstocks to those grown in the US, Canada, or Mexico. Support also came from the higher European rapeseed and crude oil markets.
Canola traded on both sides of unchanged overnight but climbed higher in Wednesday’s day session and closed with strong gains. Spillover support came from the sharply higher soybean and soybean oil markets. The higher Malaysian palm oil and European rapeseed markets added to the gains. Support also carried over from Wednesday’s release of the 45Z tax credit draft rules, which allows fuel made with Canadian canola to qualify for the credit.
On Thursday canola traded on both sides of unchanged overnight but climbed higher in the day session to close with decent gains. Support came from the strong gains in the soybean market. Light support came from the slightly lower Canadian dollar. Stats Canda will release their Dec. 31 grain stocks report on Friday. Traders expect to see higher stocks due to the record canola crop.
Thursday’s cash sunflower bids in Fargo were at $22.90. Cash canola bids in Fargo were at $21.80. Cash bids in Velva were at $20.85.
For the week, March canola was at $660.80 up $12.80 while May canola was at $671.10 up $11.90.
Canola/Sunflower Weekly Comments February 6
Canola/Sunflower Weekly Comments February 6
To start the week canola dropped sharply lower early in the overnight session but then was able to trim the losses as the session continued to close around $3 lower. Pressure came from the lower soybean and soybean oil markets and the sharply lower crude oil market. Technical selling added pressure. Losses were limited by the weaker Canadian dollar.
In Tuesday’s session canola climbed higher throughout the overnight session, trimmed the gains a bit in the day session but still closed solidly higher. Canola also saw support from the 45Z tax credit guidelines as they limit feedstocks to those grown in the US, Canada, or Mexico. Support also came from the higher European rapeseed and crude oil markets.
Canola traded on both sides of unchanged overnight but climbed higher in Wednesday’s day session and closed with strong gains. Spillover support came from the sharply higher soybean and soybean oil markets. The higher Malaysian palm oil and European rapeseed markets added to the gains. Support also carried over from Wednesday’s release of the 45Z tax credit draft rules, which allows fuel made with Canadian canola to qualify for the credit.
On Thursday canola traded on both sides of unchanged overnight but climbed higher in the day session to close with decent gains. Support came from the strong gains in the soybean market. Light support came from the slightly lower Canadian dollar. Stats Canda will release their Dec. 31 grain stocks report on Friday. Traders expect to see higher stocks due to the record canola crop.
Thursday’s cash sunflower bids in Fargo were at $22.90. Cash canola bids in Fargo were at $21.80. Cash bids in Velva were at $20.85.
For the week, March canola was at $660.80 up $12.80 while May canola was at $671.10 up $11.90.