Canola Futures Plummet Amid Crude Oil Weakness
The Intercontinental Exchange (ICE) canola futures experienced a sharp decline on Friday morning, extending the downturn from the previous overnight session.
The weakness in crude oil prices was a major contributing factor, with the spillover effect weighing heavily on vegetable oils. The Chicago soy complex and European rapeseed were also pulling back, while Malaysian palm oil saw a slight increase in most contracts.
According to the article, the November canola contract has risen by more than C$40 per tonne over the last week due to factors such as the Middle East war driving up crude oil prices and favorable weather conditions on the Prairies. However, the recent profit-taking may have contributed to the decline.
The Canadian Grain Commission reported that canola exports fell nearly 45% during the week ended July 19 at 168,100 tonnes, bringing cumulative exports to 8.73 million tonnes, exceeding Agriculture and Agri-Food's most recent projection for 2025-26 of 8.5 million tonnes.
The Canadian dollar was also lower on Friday morning, trading at 70.90 U.S. cents compared to Thursday's close of 71.01 U.S. cents.