Canola/Sunflower Weekly Comments

Canola/Sunflower Weekly Comments

Canola ended Monday’s mixed with small losses in the front months and small gains in the new crop contracts. Pressure came from the sharp losses in the soybean oil market. Strong crush margins and a higher soybean market supported the deferred contracts.

Canola closed lower across the board on Tuesday. Early selling spilled over from a lower US soybean complex. Late session pressure came from pressure from a sharply lower crude oil market. Losses were kept in check early from reports of strong crush margins. A weaker Canadian dollar also helped to trim losses.

On Wednesday canola started the overnight session higher but quickly turned lower and then added to the losses to close lower. Pressure came from the larger than expected crop in Australia as they will complete with Canada in the export market. Farmer selling added to the losses, as well as losses in the Malaysian palm oil and European rapeseed markets. Losses were limited by the higher soybean oil market.

In Thursday’s session canola saw small losses overnight, but the losses accelerated in the day session and the market closed sharply lower. The May contract closed below $800.00 for the first time since Jan. 25. Pressure came from the sharply lower soybean oil market (down over $2.00) and the lower European rapeseed market. Losses were limited by continuing strong crush margins.

Thursday’s cash sunflower bids in Fargo were at $23.50. Cash canola bids in Fargo were at $27.60 and bids in Velva were at $26.73.

For the week, May canola was at $777.80 down $44.70 and Nov. canola was at $755.80 down $35.50.