WINNIPEG, Manitoba--ICE canola futures climbed sharply higher during the week ended July 8, rising by roughly C$50 per ton and surpassing major moving averages as the market found spillover support from advances in outside markets.
The November contract settled at C$783.70 per ton on July 8, marking its highest close since June 4.
Increased tensions between the United States and Iran sparked a rally in crude oil, which spilled into global vegetable oil markets. Chicago soyoil jumped back above 70 cents per pound in the August contract for the first time in three weeks.
While strength in outside markets sparked the rally in canola, the oilseed also saw independent strength from mounting weather concerns in parts of the Prairies.
"We won't have a record crop, despite record acres," said analyst Bruce Burnett of Glacier FarmMedia. He estimated that at least 5% of planted canola area would be abandoned due to flooding and excess moisture, which would be well above the average abandonment rate of about 1%.
