Canola futures closed moderately higher Thursday, supported by strength across the broader oilseed complex and a sharp rally in crude oil.
Chicago soybean futures posted solid gains ahead of Friday’s USDA WASDE report, providing spillover support to canola, while surging energy markets added another bullish influence for vegetable oils and biofuel feedstocks. Brent crude jumped more than 6% to over US$107/barrel and U.S. crude climbed above US$102 as escalating Middle East tensions heightened concerns about global energy supplies.
A slightly weaker Canadian dollar also helped underpin canola by making Canadian supplies more competitive for foreign buyers.
Today’s Saskatchewan crop report pegged the overall harvest in that province at 27% complete as of Monday, up just 9 points from a week earlier and well behind last year and the average pace as wet conditions continue to hold farmers back. The canola harvest was estimated at 9% complete.
Additional precipitation and periods of mild to cool temperatures will likely further slow or delay harvesting and general fieldwork the coming week, World Weather said today.
November canola gained $7.20 to $839.90, and January was $8.20 higher at $850.
