Canola/Sunflower Weekly Comments May 19

Canola/Sunflower Weekly Comments May 19

Canola climbed higher throughout Monday’s session and closed with strong gains. Support came from the higher soybean and soybean oil markets. On Friday Alberta reported canola planting progress at 9.5% complete as of May 9 (Manitoba will release their first crop report on Tuesday). Gains were limited by the higher Canadian dollar.

Canola closed with small losses across the board on Tuesday. Selling pressure spilled over from the lower US soybean complex. Pressure also came from a lower palm oil market and EU rapeseed. Losses were kept in check from growing concerns as the western regions of Canada remain extremely dry. Ukraine Grain Association is estimating the 2023 Ukraine canola crop at 3.7 MMT vs 3.6 MMT last year. The sunflower crop is estimated at 12.7 MMT vs 10.5 MMT last year.

In Wednesday’s session canola traded on both sides of unchanged overnight but spent the day session falling lower and closing with losses. Pressure came from the steep losses in the soybean complex. The lower Malaysian palm oil and European rapeseed oil markets added to the losses. Manitoba’s first crop report of the season had the province’s canola planting at 8% complete and sunflower planting at 15% complete. For all crops, Manitoba is 25% planted vs. 63% average.

On Thursday canola was higher for most of the overnight session but turned lower and then added to the losses in the day session to close lower. Pressure came from the lower Malaysian palm oil and European rapeseed markets. Fund selling added to the losses. Losses were limited by the higher soybean oil market. Saskatchewan reported all crop planting progress as of May 15 at 38% complete vs. 53% average with canola at 19% planted.

Thursday’s cash sunflower bids in Fargo were at $20.10. Cash canola bids in Fargo were at $24.75 and bids in Velva were at $24.46.

As of May 14, ND canola planting was at 9% vs. 3% last week and 22% average.

As of May 14, US sunflower planting was at 1% complete vs. 2% average. ND is at 0% planted vs. 3% average.

For the week, July canola was at $697.40 down $15.50 and Nov. canola was at $669.40 down $21.20.