To start the week, canola gapped lower at the start of the overnight session and then added to the losses. The market briefly got on the positive side midway through the day session but then faded again and closed with losses in old crop and small gains in the new crop contracts. Technical selling pushed the market lower. Losses were limited by the gains in the soybean oil market and strong demand. Canada crushed 1.025 MMT of canola in March. That was the second highest monthly crush on record. So far this marketing year crush is running 6% ahead of last year’s pace.
In Tuesday’s session canola saw small losses overnight and then losses accelerated in the day session. The market was able to trim the losses a bit late in the session but still closed solidly lower. Pressure came from the sharply lower soybean oil market (down over $1.00). The lower Malaysian palm oil and European rapeseed markets added pressure. But very tight stocks limited losses as traders believe Stats Canada overestimated last year’s canola crop by 1 MMT.
Canola ended Wednesday’s session mixed with gains in the front month contracts and small losses in the new crop contracts. Overnight pressure came from the lower soybean complex as well as the lower Malaysian palm oil and European rapeseed markets. Spillover pressure came from the sharply lower crude oil market. But the old crop contracts found support in the day session from Canada’s very tight stocks and strong demand.
On Thursday canola opened the overnight session lower and extended session losses early, following the trend set by the US soybean complex. Losses were trimmed once the rally started in US soybeans. Early support spilled over from the strength in the US soybeans and soybean oil. Tight supplies and concerns that Canada could run out of canola add support. A weaker Canadian dollar added support.
Thursday’s cash sunflower bids in Fargo were at $27.00. Cash canola bids in West Fargo were at $22.00. Cash canola bids in Velva were at $21.23.
As of April 27, 4% of North Dakota’s canola had been planted vs. 2% last week and 2% average.
For the week, May canola was at $$693.30 down $4.00 while July canola was at $708.00 up $6.20.
For the month, May canola was up $69.90 while July canola was up $73.50.
Canola/Sunflower Weekly Comments May 2
Canola/Sunflower Weekly Comments May 2
To start the week, canola gapped lower at the start of the overnight session and then added to the losses. The market briefly got on the positive side midway through the day session but then faded again and closed with losses in old crop and small gains in the new crop contracts. Technical selling pushed the market lower. Losses were limited by the gains in the soybean oil market and strong demand. Canada crushed 1.025 MMT of canola in March. That was the second highest monthly crush on record. So far this marketing year crush is running 6% ahead of last year’s pace.
In Tuesday’s session canola saw small losses overnight and then losses accelerated in the day session. The market was able to trim the losses a bit late in the session but still closed solidly lower. Pressure came from the sharply lower soybean oil market (down over $1.00). The lower Malaysian palm oil and European rapeseed markets added pressure. But very tight stocks limited losses as traders believe Stats Canada overestimated last year’s canola crop by 1 MMT.
Canola ended Wednesday’s session mixed with gains in the front month contracts and small losses in the new crop contracts. Overnight pressure came from the lower soybean complex as well as the lower Malaysian palm oil and European rapeseed markets. Spillover pressure came from the sharply lower crude oil market. But the old crop contracts found support in the day session from Canada’s very tight stocks and strong demand.
On Thursday canola opened the overnight session lower and extended session losses early, following the trend set by the US soybean complex. Losses were trimmed once the rally started in US soybeans. Early support spilled over from the strength in the US soybeans and soybean oil. Tight supplies and concerns that Canada could run out of canola add support. A weaker Canadian dollar added support.
Thursday’s cash sunflower bids in Fargo were at $27.00. Cash canola bids in West Fargo were at $22.00. Cash canola bids in Velva were at $21.23.
As of April 27, 4% of North Dakota’s canola had been planted vs. 2% last week and 2% average.
For the week, May canola was at $$693.30 down $4.00 while July canola was at $708.00 up $6.20.
For the month, May canola was up $69.90 while July canola was up $73.50.