Canola/Sunflower Weekly Comments March 28

Canola/Sunflower Weekly Comments March 28

To start the week canola saw small losses for most of the overnight session but climbed higher throughout the day session to close sharply higher. Support came from the strong gains in the soybean complex. Spillover support came from the sharply higher crude oil market. Funds covering short positions added to the gains. Stats Canada reported 897,800 MT of canola were crushed in Feb, which was 85,000 MT higher than Feb. 2023’s crush.

Canola closed with heavy losses across the board on Tuesday. Canola opened the session on the defense with early selling pressure spilling over from the lower US soybean complex. An overall lower session in the veg oil markets added pressure as palm oil and EU rapeseed was also lower. Position squaring ahead of Thursday’s USDA reports was also evident.

In Wednesday’s session canola saw small losses overnight and added to the losses in the day session to close sharply lower. Pressure came from the lower soybean complex, as well as from the lower Malaysian palm oil and European rapeseed markets. Profit taking added to the losses. Losses were limited by the weaker Canadian dollar.

Wednesday’s cash sunflower bids in Fargo were at $14.50. Cash canola bids in West Fargo were at $21.45. Cash canola bids in Velva were at $20.31.

For the week, May canola was at $626.40 down $8.10 while July canola was at $636.10 down $8.00.

For the month, May canola was up $32.70 while July canola was up $35.20.