To start the week canola was lower overnight, saw the session highs early in the day session but then faded and closed with losses. The July contract hit a high of $714.00 before backing off. That was an 18-month high. Good planting conditions across the Canadian Prairies pressured canola. The lower soybean complex added to the losses.
On Tuesday canola traded back and forth on both sides of unchanged but faded in the day session and closed with losses. Pressure came from the losses in the soybean complex, as well as losses in the Malaysian palm oil and European rapeseed markets. Technical selling and the stronger Canadian dollar added pressure.
In Wednesday’s session canola was higher overnight, turned lower midway through the day session but then climbed higher for the rest of the session and closed with solid gains. Support came from positioning ahead of Thursday’s Stats Canada stocks report. Traders believe Stats Canada may have underestimated Canada’s canola production by as much as 1.5 MMT and March 31 stocks are expected to be less than half of what they were a year ago. Dry conditions in western Canada added support. Gains were limited by the sharply lower soybean oil market (down over $1.00).
Canola closed with small losses on Thursday. Early selling spilled over from a lower US soybean complex. Canola was able to trim losses in the overnight with position squaring ahead of the morning’s Stats Canada report the main driver. Canola stocks as of March 31 were estimated at 5.89 MMT vs expectations of 6.09 MMT and vs 9.58 MMT last year. Gains were trimmed around midsession due to technical pressure as well as from reports of improving planting conditions in the US.
Thursday’s cash sunflower bids in Fargo were at $27.25. Cash canola bids in West Fargo were at $21.35. Cash canola bids in Velva were at $20.58.
As of May 4, 12% of North Dakota’s canola had been planted vs. 4% last week and 6% average.
For the week, July canola was at $712.10 up $4.10 while Nov canola was at $670.60 up $13.30.
Canola/Sunflower Weekly Comments May 9
Canola/Sunflower Weekly Comments May 9
To start the week canola was lower overnight, saw the session highs early in the day session but then faded and closed with losses. The July contract hit a high of $714.00 before backing off. That was an 18-month high. Good planting conditions across the Canadian Prairies pressured canola. The lower soybean complex added to the losses.
On Tuesday canola traded back and forth on both sides of unchanged but faded in the day session and closed with losses. Pressure came from the losses in the soybean complex, as well as losses in the Malaysian palm oil and European rapeseed markets. Technical selling and the stronger Canadian dollar added pressure.
In Wednesday’s session canola was higher overnight, turned lower midway through the day session but then climbed higher for the rest of the session and closed with solid gains. Support came from positioning ahead of Thursday’s Stats Canada stocks report. Traders believe Stats Canada may have underestimated Canada’s canola production by as much as 1.5 MMT and March 31 stocks are expected to be less than half of what they were a year ago. Dry conditions in western Canada added support. Gains were limited by the sharply lower soybean oil market (down over $1.00).
Canola closed with small losses on Thursday. Early selling spilled over from a lower US soybean complex. Canola was able to trim losses in the overnight with position squaring ahead of the morning’s Stats Canada report the main driver. Canola stocks as of March 31 were estimated at 5.89 MMT vs expectations of 6.09 MMT and vs 9.58 MMT last year. Gains were trimmed around midsession due to technical pressure as well as from reports of improving planting conditions in the US.
Thursday’s cash sunflower bids in Fargo were at $27.25. Cash canola bids in West Fargo were at $21.35. Cash canola bids in Velva were at $20.58.
As of May 4, 12% of North Dakota’s canola had been planted vs. 4% last week and 6% average.
For the week, July canola was at $712.10 up $4.10 while Nov canola was at $670.60 up $13.30.