Canola futures closed higher on Thursday, riding the coattails of a rally in palm oil.
Buoyed by a weaker production outlook for Malaysia, the gains in palm oil spilled over into other vegoils, also including Chicago soybean oil. Soybean futures were solidly higher on the day as well. On the other side, strength in the Canadian dollar helped to temper the upside in canola.
While strong demand and a tightening supply remain positive influences for canola prices, political uncertainty and large US and global soybean crops are wildcards in the outlook.
January canola gained $12.20 to $659.80, and March added $13.20 to $672.40.
