Canola futures closed with strong gains to end the week, with strength in crude oil and a lower Canadian dollar offering support.
Crude gained on reports that Israel is preparing for a direct attack from Iran this weekend, a development that would ratchet Middle East tensions to their highest point since the start of the Israel-Hamas war last fall. Perceived safe havens like gold and the US dollar also rallied today, while stocks fell.
Canola stumbled in the wake of yesterday’s USDA supply-demand update, which was bearish for soybeans, so if the rebound in canola is going to continue it will need fresh fuel, like continued improvements in exports or deepening Prairie weather problems.
May canola jumped $10.40 to $634.70, July gained $10.60 to $646.30, and November added $11.70 to $657.
