Canola Futures Gain on Vegetable Oil Support Amid Crude Oil Declines
Canola futures on the Intercontinental Exchange (ICE) saw gains on Monday, supported by strength in vegetable oils. Chicago soyoil, European rapeseed, and Malaysian palm oil all posted modest increases, although declines in crude oil limited the upswing. Crude oil prices were slightly lower after the G7 announced plans to release 100 million barrels of oil and fuel products to curb prices, while Saudi Arabia cut crude oil prices to Asia to six-year lows.
Alberta’s canola harvest progressed 16 percentage points in the week ended Sept. 29, reaching 31 percent completion. The Canadian dollar was down less than one-tenth of a U.S. cent compared to Friday’s close. Trading activity for canola was robust, with 86,244 contracts traded on Monday, up slightly from 85,423 contracts on Friday. Spread trades accounted for 59,836 of Monday’s contracts.
Settlement prices for ICE Canola contracts showed gains across various expiry dates. The November contract settled at 819.40 C$/tonne, up 3.90, while the January contract rose 4.10 to 832.80 C$/tonne. The March and May contracts also saw increases, settling at 841.40 and 843.70 C$/tonne, respectively. Other agricultural commodities like wheat, corn, oats, and soybeans also saw mixed movements.