By Glen Hallick
Glacier FarmMedia – Intercontinental Exchange canola futures closed stronger for a second day on Tuesday, propelled higher by the upswing in crude oil.
Air strikes against oil facilities in the Middle East and the de facto closure of the Strait of Hormuz pushed crude up sharply for another session. That generated increases in Chicago soy complex, MATIF rapeseed and Malaysian palm oil.
Also, the rise in crude prices have already resulted in higher prices for fertilizer and natural gas.
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China’s reduction/elimination of its tariffs on Canadian canola imports is expected to give a boost to Canada’s exports of the oilseed.
The May contract closed above its resistance level of C$700 per tonne. An analyst said resistance is now at C$720.
Statistics Canada is set to issue its planted area projections on Thursday. The trade is looking for canola acres to expand from the 21.62 million seeded in 2025/26.
The Canadian dollar was higher on Tuesday afternoon, with the loonie at 73.20 U.S. cents compared to Monday’s close of 73.06.
There were 75,116 contracts traded on Tuesday, compared to 75,929 on Monday. Spreading accounted for 40,620 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change
Canola May 706.60 up 8.20
Jul 717.20 up 8.10
Nov 707.40 up 5.70
Jan 713.90 up 5.40
