Canola futures ended lower Monday as a retreat in crude oil reduced support for the vegetable oil complex.
Optimism surrounding a potential Middle East peace agreement eased concerns about disruptions through the Strait of Hormuz, sending energy prices lower and weakening the biofuel-related demand outlook for canola oil. Chicago soybean oil closed mixed, while firmer soybean futures helped limit the decline.
Uncertainty remains over how many Prairie acres have been lost to excessive moisture, which kept canola’s losses relatively modest. Scattered showers are in the forecast for the Prairies this week, with some of the most significant rainfall expected in Alberta.
July canola lost $5.10 to $752.10, and November was down $5.50 at $760.40.
