Crusher buying and worries about damage to the Argentine soybean crop helped push canola futures up Monday. Palm oil rose too, helping justify a $4 per tonne gain in March canola.
That takes canola nicely above the $500 mark, a key support and resistance level.
The contract has traded on either side of $500 in recent weeks, but has gravitated back to that psychologically important number.
March canola closed at $504.10, while May closed at $510.80.
U.S. markets were closed due to the Martin Luther King Jr. Day holiday.
Read Also
Most of Manitoba harvest wraps up for 2025
Manitoba Agriculture issued its final crop report of 2025, showing the overall provincewide harvest at 97 per cent complete as of Oct. 20. Nearly all major crops have finished combining, with 37 per cent of Manitoba’s sunflowers finished, plus 71 per cent of grain corn and small amounts of soybeans and potatoes left to do.
Heavy rain again hit the Argentine soybean crop this weekend causing more flooding. Most of the Argentine crop has been planted, but it is vulnerable to early season damage. More rain is expected late this week.
Soybean acreage is already down in Argentina following taxation changes in the country that had been holding down wheat and corn acres, so any threat to the crop is watched closely. The Rosario grain exchange said that 30 percent of the acreage is threatened by bad weather.
Meanwhile, Brazil is already harvesting early seeded soybeans but supplies could be disrupted by a truckers’ protest that is stopping grain trucks heading from Mato Grosso state to the port of Paranagua.
Canola crushing margins are still good and have even risen recently, encouraging heavy domestic consumption of Canada’s crop.
Canola exports are keeping pace with last year’s record movement.
European wheat futures were neutral Monday, shaking off fears of cold damage earlier in January but bracing for a shock of frigid weather expected to key winter wheat producer France later this week.
Most European wheat crops are covered with enough snow to survive any but the most frigid temperatures.
The Canadian dollar at noon was US75.97 cents, down from 76.13 cents the previous trading day. The U.S. dollar at noon was C$1.3187.
Brent crude oil was up US41 cents a barrel, or 0.7 percent, at $55.86 and U.S. West Texas Intermediate crude climbed 27 cents, to $52.64 a barrel.
The Toronto Stock Exchange’s S&P/TSX composite index closed down 17.99 points, or 0.12 percent, at 15,479.29.
U.S. stock markets were closed.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 17 504.10s +4.00 +0.80%
Canola May 17 510.80s +3.70 +0.73%
Canola Jul 17 514.30s +3.20 +0.63%
Canola Nov 17 495.60s +2.70 +0.55%
Canola Jan 18 497.40s +2.70 +0.55%
Milling Wheat Mar 17 242.00s -1.00 -0.41%
Milling Wheat May 17 245.00s +2.00 +0.82%
Milling Wheat Jul 17 244.00s +2.00 +0.83%
Durum Wheat Mar 17 315.00s -2.00 -0.63%
Durum Wheat May 17 318.00s -2.00 -0.63%
Durum Wheat Jul 17 323.00s unch unch
Barley Mar 17 139.00s unch unch
Barley May 17 141.00s unch unch
Barley Jul 17 142.00s unch unch
