Canola futures closed sharply higher Wednesday, extending a recent rally to three-year highs as strength in outside vegetable oil and energy markets encouraged additional buying.
Gains in the Chicago soy complex provided direct spillover support. Sharply higher crude oil added to the bullish tone by improving the value of vegetable oils as biodiesel feedstocks. Crude reached a six-week high as the escalating U.S.-Iran conflict disrupted tanker traffic through the Strait of Hormuz, while Houthi threats against Saudi shipping reduced traffic through the Red Sea.
Ongoing tensions in the Black Sea region added to the upside, with Russia reportedly restricting vessel movement at one of its ports in the wake of Ukrainian drone attacks.
November canola jumped $19.40 to $822.60, and January climbed $19.60 to $832.50.
