Crude Oil Surge Lifts Canola Futures Amid Global Tensions

Canola futures on the Intercontinental Exchange (ICE) made modest gains on Thursday due to rising crude oil prices. The attacks by Iran-backed Houthi rebels on Saudi oil tankers, as well as concerns over a potential new deal to reopen the Strait of Hormuz, contributed to a US$2 per tonne increase in crude oil prices.

The Canadian dollar remained steady, with only a minor fluctuation compared to Wednesday's close. However, canola futures saw some movement, with November contracts up 2.90 Canadian dollars per metric tonne and January contracts increasing by 3.30 Canadian dollars per metric tonne.

Spread trade prices also saw activity, with Nov/Jan spreads ranging from 9.50 under to 10.20 under in Canadian dollars per metric tonne. The ICE reported a total of 40,187 canola contracts traded on Thursday, compared to 41,612 the previous day.