WINNIPEG, Manitoba--Canola futures on the Intercontinental Exchange were being propelled higher mid-session Friday by a surge in crude oil prices.
That's caused the May canola contract to climb well above resistance at C$720 per tonne.
The charge in crude oil was also driving up the Chicago soy complex, MATIF rapeseed and Malaysian palm oil.
An analyst warned that crude's sharp rise is leading to increases in fertilizer costs. The analyst said Prairie farmers could switch from planting canola to seeding soybeans to reduce input expenses.
On Thursday, StatCan forecast canola acres in 2026/27 to increase from last year by about 216,000 at 21.84 million.
The Canadian Grain Commission reported canola exports for the week ended March 1 slipped to 203,000 metric tons. That brought the cumulative tally to 4.47 million metric tons, compared to 6.13 million a year ago. However, renewed Chinese buying could significantly push up exports in the remaining months of the marketing year.
The Canadian dollar was stronger by late Friday morning with the loonie at 73.44 U.S. cents, compared to Thursday's close of 73.12.
Approximately 61,800 canola contracts were traded as of 11:36 a.m. EST, with prices in Canadian dollars per metric ton:
Price Change
May 726.70 up 6.80
Jul 736.10 up 6.10
Nov 722.80 up 3.70
Jan 729.00 up 3.80
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
03-06-26 1208ET
