Canola futures posted strong gains on Tuesday, boosted by a sharp rally in Chicago soybean oil and renewed speculative buying ahead of the midweek holiday.
Soy oil futures advanced for a second session, drawing support from rising crude oil prices and technical buying. The strength filtered into the Canadian oilseed market, offsetting pressure from recent Prairie rainfall. While showers over the past several days helped replenish topsoil moisture in parts of Alberta and Saskatchewan, concerns remain over uneven distribution and the timing of follow-up precipitation.
Trade also reacted to updated supply-demand fundamentals, with tight Canadian ending stock projections continuing to underpin the market. Agriculture Canada’s latest forecast pegs 2024-25 canola carryout at 1.15 million tonnes, near a 12-year low.
November canola jumped $24.80 to $734.50, and January gained $23.90 to $742.20.
