To start the week canola traded on both sides of unchanged in a very choppy session and closed mixed with gains in the front month July contract and losses in the deferred contracts. Early gains spillover over from the higher crude oil market but as the soybean complex lost ground in the day session, it pulled canola down with it. Stats Canada will release their acreage estimates tomorrow with traders expecting canola acres will be higher than the March estimate of 21.8 million and possibly close to the record 23.0 million from 2017. Alberta reported their canola crop condition rating at 63.4% g/e. The NW part of the province is only rated 38.5% g/e due to recent heavy rains.
In Tuesday’s session canola saw small gains overnight but fell lower when the Stats Canada report came out and closed with losses. Pressure came from estimates of record planted acres in both the US and Canada. The sharply lower soybean oil market added to the losses.
Stats Canada estimated canola planted acres at 23.4 million, higher than both the average trade estimate of 22.8 million and last year’s 21.6 million. This would also be a new record, beating 2017’s 23.0 million acres.
USDA estimated canola planted acres at 2.965 million, up 626,500 acres over last year and a new record for the US if realized.
USDA estimated all sunflower acres at 1.348 million, up 60,000 from last year, split between oil at 1.224 million (up 3%) and non-oil at 124,000 acres (up 25%).
The canola market was closed on Wednesday in observance of Canada Day.
Wednesday’s cash sunflower bids in Fargo were at $25.25. Cash canola bids in Fargo were at $24.50. Cash bids in Velva were at $23.46.
For the week, July canola was at $729.00 down $4.10 while Nov canola was at $736.50 down $8.00.
For the month, July canola was down $19.70 while Nov canola was down $37.40.
Canola/Sunflower Weekly Comments July 2
Canola/Sunflower Weekly Comments July 2
To start the week canola traded on both sides of unchanged in a very choppy session and closed mixed with gains in the front month July contract and losses in the deferred contracts. Early gains spillover over from the higher crude oil market but as the soybean complex lost ground in the day session, it pulled canola down with it. Stats Canada will release their acreage estimates tomorrow with traders expecting canola acres will be higher than the March estimate of 21.8 million and possibly close to the record 23.0 million from 2017. Alberta reported their canola crop condition rating at 63.4% g/e. The NW part of the province is only rated 38.5% g/e due to recent heavy rains.
In Tuesday’s session canola saw small gains overnight but fell lower when the Stats Canada report came out and closed with losses. Pressure came from estimates of record planted acres in both the US and Canada. The sharply lower soybean oil market added to the losses.
Stats Canada estimated canola planted acres at 23.4 million, higher than both the average trade estimate of 22.8 million and last year’s 21.6 million. This would also be a new record, beating 2017’s 23.0 million acres.
USDA estimated canola planted acres at 2.965 million, up 626,500 acres over last year and a new record for the US if realized.
USDA estimated all sunflower acres at 1.348 million, up 60,000 from last year, split between oil at 1.224 million (up 3%) and non-oil at 124,000 acres (up 25%).
The canola market was closed on Wednesday in observance of Canada Day.
Wednesday’s cash sunflower bids in Fargo were at $25.25. Cash canola bids in Fargo were at $24.50. Cash bids in Velva were at $23.46.
For the week, July canola was at $729.00 down $4.10 while Nov canola was at $736.50 down $8.00.
For the month, July canola was down $19.70 while Nov canola was down $37.40.