Canola Futures Plummet as Trump Rejects Iran's Proposal

ICE canola futures had a rough start to the week, plummeting below their major averages on Monday morning. The decline was not limited to canola, as crude oil prices also jumped after US President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz over the weekend.

Trump stated that he expects US negotiators to return to the bargaining table this week, which may have contributed to the increase in crude oil prices. However, the spike in canola futures was more significant, with the Nov contract falling 15.10 Canadian dollars per metric ton and the Jan contract declining 15.40 CAD/mt.

The decline in canola prices was not mirrored by other oilseed markets, as Chicago soyoil remained steady while European rapeseed was lower and Malaysian palm oil was mixed. The outlook for Canada's canola crop is also being watched closely, with Alberta's harvest 14.9% complete as of September 22.

Agriculture and Agri-Food Canada raised its projection for canola ending stocks in 2026-27 to 1.979 million tonnes, up from 1.504 million tonnes the previous month. The organization also lowered projected Canadian canola exports for 2026-27 to 7.700 million tonnes, down from 8.000 million tonnes in August.