Canola Futures Plummet After Crude Oil Surpass Stratis of Hormuz
Canola futures on the Intercontinental Exchange (ICE) took a step back on Wednesday morning, undoing some of their gains from the previous day. The price correction comes despite a significant increase in crude oil passing through the Strait of Hormuz, which could have supported energy prices and by extension, canola futures.
According to U.S. Secretary of Energy Chris Wright, 17 million barrels of crude oil traversed the strategic waterway on Monday, marking the highest one-day amount since the start of the war between the United States and Iran. However, this boost in energy supply has yet to translate into a price increase for canola futures.
The ICE's Canolafutures were down by 15-16 Canadian dollars per metric ton across different contract dates, with November's contract closing at $826.90, January's at $837.10, March's at $845.00, and May's at $850.20. The decline in canola futures comes as Chicago soyoil, European rapeseed, and Malaysian palm oil also trend downward.
The Canadian dollar has depreciated by less than one-tenth of a U.S. cent compared to its previous close, while the Bank of Canada maintained its key interest rate at 2.25 per cent.