ICE Canola Futures Rally on Crude Oil Gains

Canola futures have been rallying this summer and may continue to rise in the fall, according to technical and fundamental analysts. On Thursday, ICE canola futures turned positive after earlier declines, driven by strong gains in crude oil. However, crude prices were mixed by the end of the day.

The rally in canola was also influenced by increases in Chicago soybeans and soymeal, but soyoil remained weaker. In contrast, most European rapeseed contracts and Malaysian palm oil declined.

A major factor contributing to uncertainty in the canola market is the upcoming harvest season. Agriculture and Agri-Food Canada has projected a production of 21.6 million tonnes, but varied crop conditions across the Prairies may result in reduced yields. Statistics Canada will issue its production report on September 16.