Canola futures closed higher on Tuesday, supported by a sharp rally in Chicago soybean futures following a bullish USDA supply-demand report.
The USDA raised its U.S. soybean production estimate by less than traders expected while cutting projected 2026-27 ending stocks to 300 million bu, below pre-report expectations of 332 million bu. The resulting surge in soybean prices provided spillover support for canola, helping extend Monday's modest gains. Continued strong Canadian canola export and domestic processing demand also provided underlying support, with both running ahead of last year's pace.
Declines in crude oil and competing vegetable oils limited the gains in canola.
January was up $13 at $770.40, and November 2027 added $8.60 to $764.90.
