Canola futures finished with double-digit gains on Friday, supported by strong advances in both crude oil and Chicago soybean oil.
The rally in competing vegetable oils provided direct spillover strength to canola, while the surge in energy markets improved the broader outlook for biodiesel and renewable fuel demand.
Crude oil climbed to a five-week high amid fears that escalating hostilities between the U.S. and Iran could threaten supplies moving through the Strait of Hormuz. Chicago soyoil also posted sharp gains, hitting six-week highs, as higher petroleum prices improved the relative economics of biofuel feedstocks.
Today's Alberta crop report pegged the canola crop in the province at just 56% good to excellent as of Tuesday, one of the lowest ratings among all crops.
November canola was up $11 at $794.50, and January was $11.60 higher at $803.80.
