Canola/Sunflower Weekly Comments Sept. 15

Canola/Sunflower Weekly Comments Sept. 15

To start the week canola saw small gains at the start of the overnight session but soon turned lower and then added to the losses to close solidly lower. Pressure came from the advancing canola harvest and lower world vegetable oil markets. Technical selling added to the losses. Alberta reported that 10% of their canola is harvested.

In Tuesday’s session canola saw losses overnight and then added to the losses in the day session to close sharply lower. Harvest pressure and speculative selling continued to pull canola lower. The lower soybean complex added to the losses as today’s report was negative soybeans.

Canola closed higher across the board on Wednesday. Technical buying helped canola push higher as canola has not traded on the plus side in over a week due to harvest pressure. Light support also came from a stronger US soybean complex (late in the session) while earlier support came from a stronger EU rapeseed market and stronger Malaysian palm oil market.

On Thursday canola saw small losses overnight but turned higher in the day session on a friendly Stats Canada report. The report estimated Canada’s canola production at 17.4 MMT. That was 0.5 MMT lower than expected, 0.2 MMT lower than last month and 1.3 MMT lower than last year. The higher soybean complex added to the gains. Gains were limited by harvest pressure. Saskatchewan reported that 42% of the province’s canola has been harvested.

Thursday’s cash sunflower bids in Fargo were at $18.50. Cash canola bids in Fargo were at $25.30 and bids in Velva were at $24.47.

As of Sept. 10, ND canola coloring was at 97% vs. 94% last week and 99% average. Harvest was at 43% vs. 33% last week and 60% average. Canola’s crop condition rating decreased 2% to 40% g/e, 33% fair, and 27% p/vp.

As of Sept. 3, ND sunflower ray flowers dry was 81% vs. 64% last week and 82% average. Bracts turned yellow was at 48% vs. 30% last week and 55% average. Bracts turned brown was at 14% vs. 8% last week and 18% average. Sunflower’s crop condition rating increased 3% to 64% g/e, 30% fair, and 6% p/vp.

For the week Nov canola was at $763.90 down $16.20. Jan canola was at $772.50 down $15.50.