WINNIPEG, Manitoba--ICE canola futures continued their upward climb Friday morning, as the escalating conflict in the Middle East kept crude oil rising.
West Texas Intermediate crude oil gained roughly US$20 per barrel over the past week, or 30% of its value, as the conflict in Iran spread across the Middle East. U.S. President Trump called for Iran's "unconditional surrender" on Friday and appeared to rule out negotiations.
Gains in Chicago soyoil, Malaysian palm oil and European rapeseed futures were all contributing to the strength in canola.
The May canola contract has risen by roughly C$40 per metric ton since the U.S. and Israel launched their joint attack on Iran, starting the latest conflict. While chart signals remain pointed higher, there were also ideas that the market was looking overbought.
Canada exported 203,000 metric tons of canola during the week ended March 1, which was down by 16% from the previous week. Crop year-to-date exports of 4.47 million metric tons compare with 6.13 million metric tons at the same point a year ago.
About 35,400 canola contracts had traded as of 9:39 a.m. EST.
Prices in Canadian dollars per metric tonne at 9:39 a.m. EST:
Price Change
May 730.20 up 10.30
Jul 739.70 up 9.70
Nov 725.90 up 6.80
Jan 731.60 up 6.40
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
03-06-26 1015ET
