Surging crude oil and spillover gains in Chicago soybean oil lifted canola futures on Thursday.
Canola closed higher for the fourth time this week as soyoil ended in the green for the ninth straight day. Soyoil is riding the coattails of crude higher amid the ongoing military conflict in the Middle East which is threatening global crude oil shipments. Stronger energy markets have reinforced demand expectations for biofuel feedstocks, which in turn tends to support prices for vegetable oils and related crops such as canola.
European rapeseed and palm were both higher today as well. Weakness in the Canadian dollar was supportive for canola as well.
Meanwhile, Statistics Canada reported this morning that Canadian farmers will plant about 21.8 million acres of canola in 2026, up slightly from roughly 21.6 million acres last year. Given recent price strength, some analysts believe canola area will increase further.
May canola gained $10.50 to $719.90, while November added $8.20 to $719.20.
