Crude Oil Decline Weighs on Canola Futures Prices
The Intercontinental Exchange (ICE) canola futures prices weakened on Friday morning in Canada, extending the downturn from the previous night. The decline was partly due to crude oil's sharp drop in trading, which had a spillover effect on vegetable oils.
Crude oil's slide weighed heavily on the market, with the Chicago soy complex and European rapeseed also pulling back. In contrast, Malaysian palm oil prices nudged up in most contracts.
The November canola contract has risen by over C$40 per tonne in the past week, fueled by the Middle East conflict driving up crude oil and favorable weather conditions on the Prairies.
Canada's canola exports fell 45% during the week ended July 19, reaching 168,100 tonnes. This brings cumulative exports to 8.73 million tonnes, surpassing Agriculture and Agri-Food's projection of 8.5 million tonnes for 2025-26.