Canola Futures Rebound From Session Lows Amid Crude Oil Price Volatility
ICE Canola futures were trading lower on Wednesday but managed to recover from their session lows. According to an analyst, canola ran into resistance when it reached C$840 per tonne and then fell back due to weaker crude oil prices. However, crude oil has since turned modestly higher, with canola softening its losses.
The analyst noted that canola has support at C$810 per tonne but warned that if crude oil prices tumble and harvest pressure increases, falling below C$800 is possible. Nevertheless, given the current situation in the Middle East, the analyst does not expect crude or the harvest to have a significant negative impact.
The outlook for canola remains positive, with good demand expected through the 2026-27 marketing year. In other vegetable oil markets, the Chicago soy complex was lower, while European rapeseed was also down but Malaysian palm oil saw small increases.