Canola futures closed sharply higher on Monday, supported by broad strength across the North American oilseed complex as traders returned from the U.S. Independence Day holiday weekend in a more risk-sensitive mood.
Significant gains in Chicago soybeans, soymeal, and soyoil helped pull canola higher, with the rally tied largely to increasing concern about hot and drier weather in parts of the U.S. and Europe at a key stage for crop development. European rapeseed and palm oil posted gains today as well.
Weather was the main driver across grain and oilseed markets. U.S. corn and soybean crops are moving into important summer growing periods, while excessive heat in Europe has raised concern about crop losses there as well. Wet conditions in parts of Western Canada are also raising worries about canola output.
November canola gained $17.50 to $757.20, and January was $18.30 higher at $766.10.
