Canola futures closed lower on the first trading day of 2026 but managed to pare earlier declines.
Losses in Chicago soybeans in light post-holiday trade spilled over to pressure canola, but soybean oil managed gains. Palm oil and European rapeseed were also lower to begin the New Year, while crude oil was slightly weaker.
The 2026 canola futures market in Canada opens under pressure from a record harvest and large global supplies, subdued export prospects - especially to China - and ongoing volatility in global vegetable oil markets. Domestic processing demand is historically strong, but the large supply and export headwinds are likely to keep price expectations muted, particularly in early 2026. Weather, biofuel policy, and global trade relations figure to be the key swing factors throughout the year.
March canola was up $1.50 at $603.90, and November 2026 gained $2 to $628.
