Canola/Sunflower Weekly Comments July 5

Canola/Sunflower Weekly Comments July 5

The canola market was closed Monday for the Canada Day holiday.

On Tuesday the canola market played catch up after being closed on Monday. Canola gapped higher at the start of the overnight session and then added to the gains to close sharply higher. Spillover support came from the sharply higher soybean oil market, which has had two sessions of strong gains. Malaysian palm oil was also sharply higher on rumors Indonesia is discussing putting tariffs on all Chinese goods, which may lead China to look for other sources of vegetable oil. Rumors the EU bought Canadian canola this week added to the gains. Alberta reported their canola crop is rated at 70% g/e.

In Wednesday’s session canola gapped lower at the start of the overnight session but was able to rebound and ended up closing with small gains. Support came from the strong gains in the soybean oil market. Gains were limited by the stronger Canadian dollar. Canada released long term weather forecasts that predict a 50% to 60% change of above normal temps for July through Sept. across Canada. Trading is expected to be light on Thursday since the US markets will be closed.

Wednesday’s cash sunflower bids in Fargo were at $17.00. Cash canola bids in West Fargo were at $22.35. Cash canola bids in Velva were at $20.90.

As of June 30, sunflower planting was at 97% complete vs. 93% last week and 96% average. North Dakota was at 98% complete vs. 96% last week and 97% average. ND’s sunflowers emerged were at 89% vs. 85% average. ND’s crop condition rating dropped 2% to 75% g/e, 24% fair, and 1% poor.

As of June 30, North Dakota’s canola emerged was at 98%. Canola blooming was at 28% vs. 32% average. Canola’s crop condition rating increased 7% to 67% g/e, 27% fair, and 6% p/vp.

For the week, Nov. canola was at $658.20 up $31.10.

 

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