After seeing strong gains on Monday, canola dropped sharply lower at the start of the overnight session and stayed on the lower side. The market was able to trim losses in the day session and closed with small losses. Monday’s gains were due to Agriculture Canada estimating this spring’s planted canola acres will be about 1 million lower than last year at 21.0 million. Production is expected to be down 2% to 17.5 MMT and ending stocks at 950,000 metric tons vs. 1.25 MMT the prior year. But losses overnight were due to President Trump’s comments that he may put a 25% tariff on all goods coming into the US from Canada starting Feb. 1. The US is by far the largest buyer of Canadian canola oil. Spillover support from the sharply higher soybean market helped canola trim the losses in Tuesday’s day session.
Canola traded on both sides of unchanged in a choppy session and closed with small gains on Wednesday. Pressure came from the lower European rapeseed and Malaysian palm oil markets. Traders selling soybean oil and buying canola help get canola back on the positive side. Gains were limited by uncertainty around US biofuel policy due to President Trump returning to office.
In Thursday’s session canola saw small losses overnight but climbed higher throughout the day session and closed with solid gains. Support came from the higher soybean and soybean oil markets. Tight Canadian canola stocks were also supportive. Gains were limited by uncertainty about how the Trump administration will handle tariffs and biofuel policy.
Thursday’s cash sunflower bids in Fargo were at $22.50. Cash canola bids in West Fargo were at $20.45. Cash canola bids in Velva were at $19.06.
For the week, March canola was at $638.70 up $22.70 while May canola was at $647.60 up $22.10.
Canola/Sunflower Weekly Comments January 24
Canola/Sunflower Weekly Comments January 24
After seeing strong gains on Monday, canola dropped sharply lower at the start of the overnight session and stayed on the lower side. The market was able to trim losses in the day session and closed with small losses. Monday’s gains were due to Agriculture Canada estimating this spring’s planted canola acres will be about 1 million lower than last year at 21.0 million. Production is expected to be down 2% to 17.5 MMT and ending stocks at 950,000 metric tons vs. 1.25 MMT the prior year. But losses overnight were due to President Trump’s comments that he may put a 25% tariff on all goods coming into the US from Canada starting Feb. 1. The US is by far the largest buyer of Canadian canola oil. Spillover support from the sharply higher soybean market helped canola trim the losses in Tuesday’s day session.
Canola traded on both sides of unchanged in a choppy session and closed with small gains on Wednesday. Pressure came from the lower European rapeseed and Malaysian palm oil markets. Traders selling soybean oil and buying canola help get canola back on the positive side. Gains were limited by uncertainty around US biofuel policy due to President Trump returning to office.
In Thursday’s session canola saw small losses overnight but climbed higher throughout the day session and closed with solid gains. Support came from the higher soybean and soybean oil markets. Tight Canadian canola stocks were also supportive. Gains were limited by uncertainty about how the Trump administration will handle tariffs and biofuel policy.
Thursday’s cash sunflower bids in Fargo were at $22.50. Cash canola bids in West Fargo were at $20.45. Cash canola bids in Velva were at $19.06.
For the week, March canola was at $638.70 up $22.70 while May canola was at $647.60 up $22.10.