Canola/Sunflower Weekly Comments June 7

Canola/Sunflower Weekly Comments June 7

To start the week canola saw small losses overnight and then added to the losses in the day session to close sharply lower. Pressure came from the steep losses in the soybean complex. Technical selling added to the losses. As of May 28, Alberta’s canola planting was estimated at 67% complete. All spring crop planting is at 77% complete vs. 84% average. Strategie Grains lowered their estimate of the EU’s rapeseed production from 18.12 MMT to 17.94 MMT, which would be down 10% from last year.

Canola opened lower overnight but quickly got back on the positive side, only to fall lower throughout the day session and close with losses on Tuesday. Pressure came from the lower soybean complex. Spillover pressure came from the sharply lower crude oil market. Overall good growing conditions across the Canadian Prairies added to the day’s losses. Losses were limited by the weaker Canadian dollar.

In Wednesday’s session canola continued to follow the recent trend with another session of small gains overnight and accelerating losses in the day session to close with losses. Technical selling and overall favorable growing conditions pressured canola. Manitoba reported their canola planting is 71% complete. All spring crop planting is 83% complete vs. 88% average. Environment Canada estimates there is a 60% chance of above normal temps for the country this summer. Manitoba has an 80% chance of higher-than-normal temps.

On Thursday canola climbed higher throughout the entire session and closed sharply higher. Support came from the sharply higher soybean oil and Malaysian palm oil markets. Bargain buying added to the gains. Gains were limited by good growing conditions and slow export demand. Saskatchewan reported their canola planting at 93% complete.

Thursday’s cash sunflower bids in Fargo were at $16.50. Cash canola bids in West Fargo were at $21.55 Cash canola bids in Velva were at $20.57.

As of June 2, US sunflower planting was at 38% complete vs. 18% last week and 34% average. ND is 50% complete vs. 28% last week and 44% average.

As of June 2, North Dakota’s canola planting was 81% complete vs. 63% last week and 79% average. Canola emerged was at 46% vs. 20% last week and 34% average.

For the week, July canola was at $630.10 down $30.90 while Nov. canola was at $649.50 down $33.70.