Canola futures closed higher on Thursday, as Canadian fundamentals remain strong.
Canola exports are moving at a breakneck pace, with year-to-date shipments up 168% from a year ago and 80% above the five-year average. However, some of that business may be due to frontloading by China, ahead of any potential new tariffs on Canadian product. Domestic crush demand is solid as well.
Continued uncertainty over 2024 Prairie production remains a supportive influence too. Wednesday’s seasonal summary crop report from the Manitoba government said canola yields were variable across the province, ranging from 25 to 65 bu/acre, compared to the five-year average of 39 bu.
Multi-year strength in Malaysian palm oil futures, which hit two-year highs on Wednesday, are also helping to bolster canola.
November canola gained $6.40 to $638.60, and January was $7.20 higher at $653.
