Canola futures closed strongly higher on Wednesday, drawing spillover support from strong gains across Chicago grain and oilseed markets.
Soybeans and soybean oil moved higher, while sharp advances in wheat and gains in corn encouraged broad buying across agricultural commodities. Escalating attacks on Black Sea ports and shipping routes raised concerns about disruptions to global grain and oilseed trade.
Higher crude oil prices provided additional support for canola. Crude strengthened after the U.S. launched air strikes against Iran for a fifth consecutive day in response to Iranian attacks on commercial shipping in the Strait of Hormuz.
The combination of stronger outside ag markets and geopolitical risk helped canola overcome pressure from generally favourable crop conditions across much of the Canadian Prairies.
November canola jumped $19 to $792.40, and January was up $17.70 to $801.40.
