Canola futures closed higher on Tuesday, taking back a small portion of the previous day’s heavy losses.
Canola was caught in the downdraft on Monday as Chicago crop futures posted steep declines amid mostly good US weather and rising corn and soybean production ideas. Corn and soybeans remained under pressure today, but canola was able to rally thanks to strength in soybean oil and crude oil. European rapeseed and palm oil were also higher, while losses in the Canadian dollar underpinned canola as well.
Production uncertainty remains a supportive influence for canola. Although some rain fell in the Prairies over the weekend, many areas are still too dry or only getting by on just-in-time showers.
November canola gained $7.30 to $704.10, and January was up $7.70 at $712.40.
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