ICE Close: Canola Strengthens with Soyoil, Tight Supplies

Canola futures closed higher Tuesday, as tight supplies and the need to ration demand were especially supportive for the old-crop months.

Dry weather and mounting drought concerns across the Prairies were also supportive, although expectations for increased seeded area this spring tempered the advances in the new-crop months. Gains in outside markets, including Chicago Board of Trade soyoil and European rapeseed futures, were also supportive.

France's Strategie Grains lowered its forecast for the European rapeseed crop this year to 16.8 million tonnes. That compares with an earlier estimate of just over 17 million tonnes. If realized, production would still be up from the 16.25 million tonnes grown in 2020 when dryness cut into yields.

May canola was up $17.50 at $785.10, July was $8.90 higher at $735.10 and November gained $3.40 to $625.50.

Source: DePutter Publishing Ltd.

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