Canola Futures Rebound After Crude Oil Price Surge

ICE canola futures ended the day with small gains after earlier losses on Wednesday. The turnaround was attributed to the sharp increase in crude oil prices. Analysts noted that producer deliveries of canola have been picking up due to improved weather and harvest progress on the Prairies.

With a better understanding of Canada's canola crop size, the trade has largely removed its risk premium. China purchased canola from Australia for the first time since 2020, which could lead to increased imports from Australia at the expense of Canadian supplies.

Manitoba Agriculture reported that the province's canola harvest is now 43% complete, with quality below average to average. Saskatchewan's crop report is set to be released on Thursday. The Canadian dollar traded at 70.93 U.S. cents, down from Tuesday's close of 71.10.