Canola futures closed modestly higher on Thursday, boosted by another rally in crude oil.
Crude prices initially rose sharply after Iran threatened to expand the war in the Middle East. However, crude eventually backed off amid reports that U.S. and Iranian negotiators are trying to work out a deal that would see Iran reopen the Strait of Hormuz and the U.S. lift its blockade of Iranian ports.
The gains in canola were limited by seasonal harvest pressure and losses in Chicago soybeans and soybean oil. Today’s Saskatchewan crop report showed the harvest in that province at 41% complete as of Monday, up 9 percentage points from a week earlier but still well behind normal. The report said the harvest should accelerate in the week ahead, amid better weather conditions. Canola was reported at 26% harvested.
November gained $3.50 to $827.40, and January was $4 higher at $840.
