ICE Canola Futures Rise Amid Crude Oil Decline and Strait of Hormuz Tensions
Despite overall weakness in comparable oils, Canola futures on the Intercontinental Exchange (ICE) were slightly higher coming out of the August long weekend. The US Treasury Secretary Scott Bessent said that the US and Iran could reach a deal to reopen the Strait of Hormuz 'today or tomorrow'. However, a cargo vessel was struck earlier today off Oman's coast near the strait.
Crude oil prices dropped by more than $3 per barrel on Tuesday, while Chicago soyoil and European rapeseed were lower. Meanwhile, Malaysian palm oil made gains. The Canadian dollar was down nearly one-tenth of a US cent compared to Friday's close.
The Bank of Canada did not post a closing exchange rate on Monday due to the civic holiday. About 39,500 canola contracts have traded at 10:12 CDT. Prices in Canadian dollars per metric tonne were:
Nov 760.50 up 2.30
Jan 770.50 up 3.00
Mar 778.10 up 3.60
May 783.20 up 3.20