Canola Futures Decline but Recover on Crude Price Bounce

ICE canola futures were down but managed to pull back from their session lows on Wednesday.

An analyst noted that canola ran into resistance when it reached C$840 per tonne and subsequently declined with weaker crude oil prices.

However, crude has since recovered slightly, causing canola's losses to soften. The analyst expects canola to have support at C$810/tonne but warns that if crude oil prices plummet and the harvest pressure intensifies, a drop below C$800 is possible.

The outlook for canola remains positive with strong demand anticipated through 2026-27 marketing year, according to the analyst. The current situation in the Middle East may have limited impact on crude and harvest prospects.