Spillover support from crude oil helped lift canola futures on Wednesday, as stronger energy markets underpinned vegetable oil values and improved the tone across the broader oilseed complex.
Crude oil and gasoline prices climbed sharply after the U.S. and Iran exchanged strikes overnight, raising concerns about a wider conflict and potential disruptions to oil movement through the Strait of Hormuz. Although crude eased from its highs later in the session, the early strength was enough to support soyoil, which in turn helped canola. Soybeans also closed with gains ahead of the USDA’s monthly supply-demand update tomorrow.
The weekly Manitoba crop report showed overall planting in that province nearly complete, although some areas have been hit by heavy storms and torrential rainfall.
July canola gained $6.30 to $766.40, and November was $6.70 higher at $774.50.
