Canola futures posted double-digit losses on Friday, with the May contract falling below the $700/tonne benchmark.
Canola was pressured by sharp losses in crude oil and weakness in Chicago soybean oil. Crude prices tumbled more than 10% after Iran signalled that the Strait of Hormuz had reopened to commercial shipping, easing fears of supply disruptions tied to the Middle East conflict. The move, along with indications that tensions in the region may be de-escalating, removed a significant geopolitical risk premium from energy markets.
The combined weakness in energy and competing oilseeds spilled over into canola, pushing futures lower.
Updated monthly supply-demand estimates released by Agriculture Canada this afternoon pegged 2026-27 canola ending stocks at 1.064 tonnes, down from the March estimate of 1.46 million and well below the five-year average of 2.2 million.
May canola fell $12.50 to $697.90, and November lost $11.20 to $711.60.
