Canola Futures Pull Back on Pipeline News
Canola futures on the Intercontinental Exchange (ICE) pulled back further late Thursday morning, as declines in comparable oils continued to spill over into the oilseed. The losses were attributed to reports that a pipeline in Saudi Arabia damaged by Iran-backed Houthi rebels will resume operations in the coming days. This news led to crude oil losing as much as US$2 per barrel.
Other oils also declined, with Chicago soyoil giving up more than one cent per pound, while European rapeseed and Malaysian palm oil were also in negative territory.
The canola market was moving on from Wednesday's Statistics Canada production report that estimated the 2026-27 canola crop at 22.1 million tonnes. However, an analyst noted that production, seeded acres, and yields will likely be lower in StatCan's survey-based December report.
On a more positive note, Thursday was looking like a good day to harvest in the Prairies, with central and southern parts of Alberta and Saskatchewan expected to be sunny with daytime temperatures exceeding 20 degrees Celsius. The Canadian dollar was also down two-tenths of a U.S. cent compared to Wednesday's close.