Crude Oil Rally Drives Canola Prices to Two-Year Highs

Canola prices have surged to two and a half year highs, outperforming other grains due to the rally in crude oil prices. The oilseed market has seen significant gains since July, with US soybean futures increasing by 14% and sitting at their highest level since December 2023.

Australia is on track to produce its third largest canola crop on record, with a yield of around 7 million tonnes. However, the widening gap between local markets and international values has made harvest selling decisions more challenging.

Despite the discount for local canola values, it may be worth locking in some harvest sales prices early due to uncertainty in all markets.