Crude Oil Surge Sends Canola Futures Soaring
Intercontinental Exchange (ICE) canola futures surged on Tuesday following sharp hikes in crude oil prices due to US attacks on Iran. The spike in crude oil pushed the Chicago soy complex higher, with spillover effects extending into canola. Additional support for canola came from gains in European rapeseed and Malaysian palm oil.
An analyst noted that uncertainty remains over the Prairie canola harvest, with anecdotal evidence suggesting varied crop conditions across the region. The harvest is expected to show more progress this week after a small amount was reported last week. Provincial crop reports could provide the first hard look at canola yields.
The November canola contract rose above its major moving averages following Tuesday's increases. Meanwhile, the Canadian dollar stepped back on Tuesday afternoon, with the loonie trading at 71.95 U.S. cents compared to Monday's close of 72.12.