Canola Futures Rally Amid Crude Oil Price Surge
Canola futures on the Intercontinental Exchange (ICE) continued to rise on Tuesday, following the lead of crude oil. The price increase is largely attributed to a major pipeline in Saudi Arabia being shut down due to an attack by Iran-backed Houthi rebels last weekend. This event caused a nearly US$3 per barrel surge in crude oil prices.
However, not all commodity futures are rising with canola. Chicago soyoil was down, while Malaysian palm oil increased and European rapeseed traded mixed. Statistics Canada will release its latest principal field crop report on Wednesday, which may provide further insight into the market's direction.
The Canadian dollar experienced a minor decline of less than one-tenth of a U.S. cent compared to Monday's close. Approximately 32,000 canola contracts have been traded at 10:32 CDT. The current prices for canola futures in Canadian dollars per metric tonne are:
Nov 830.50 up 7.50
Jan 842.10 up 7.80
Mar 851.90 up 8.10
May 857.20 up 8.50