Canola Futures Climb as Crude Oil Prices Rise and Canadian Dollar Weakens

Canola futures on the Intercontinental Exchange (ICE) started the week higher due to rising crude oil prices and a weaker Canadian dollar. The price surge in crude oil, caused by the shutdown of a pipeline in Saudi Arabia after an Iran-backed Houthi rebel attack, also lifted other oilseed prices such as soyoil, European rapeseed, and Malaysian palm oil.

A slower-than-expected Western Canadian canola harvest with first major frost approaching in some areas is also supporting canola prices. Analysts point to increased tensions between Russia and Ukraine as another factor contributing to the price increase.

The loonie's decline below 72 US cents further added to canola's gains, with prices rising across various contract months. As of September 8, only 2.4% of Alberta's canola crop had been harvested, indicating a delayed harvest season.