Crude Oil Price Spike Drives ICE Canola Futures Upward

Intercontinental Exchange (ICE) canola futures surged on Tuesday due to sharp hikes in crude oil prices following US attacks on Iran. The increase pushed the Chicago soy complex higher, with spillover effects into canola. Analysts noted additional support came from gains in European rapeseed and Malaysian palm oil.

The uncertainty over Prairie canola harvest conditions continued, with anecdotal evidence suggesting varied crop conditions across the region. This week will see more progress in the canola harvest after a small amount was reported last week. Provincial crop reports could provide insight into canola yields.

Tuesday's increases pushed the November canola contract above its major moving averages. The Canadian dollar stepped back on Tuesday afternoon, with the loonie at 71.95 U.S. cents compared to Monday's close of 72.12. There were 80,659 canola contracts traded on Tuesday, compared to 57,306 on Monday.