ICE Canada Morning Comment: Canola, veg oils riding sharp spike in crude
Israel attacks Iran, sending crude higher
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures erased overnight losses on Friday morning, following vegetable oils to the upside.
After Israel attacked on Iranian nuclear facilities, crude oil spiked on Friday, with ample spillover into the veg oils. There were sharp gains in Chicago soybeans and soyoil, along with more modest upticks in Malaysian palm oil and European rapeseed. Chicago soymeal stepped back.
The Canadian Grain Commission reported 2024/25 canola exports surpassed 8.68 million tonnes, further exceeding Agriculture and Agri-Food Canada’s revised estimate for the crop year of 8.50 million tonnes. AAFC is scheduled to release its next supply and demand report on June 20.
In the United States Department of Agriculture’s world oilseed report issued on Thursday, it upped it’s call on Canadian canola exports for 2024/25 to nine million tonnes from 8.75 million.
The U.S. Environmental Protection Agency is expected to announce new biofuel policies later today. Any major policy changes will alter canola prices.
The Canadian dollar was slightly lower on Friday morning, with the loonie at 73.38 U.S. cents compared to Thursday’s close of 73.46.
Approximately 45,700 contracts were traded by 8:46 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Jul 734.60 up 10.80 Nov 723.00 up 14.80 Jan 728.00 up 12.50 Mar 731.20 up 10.10
