Canola Sees Gains Amid Strong Soybean Oil Demand

Canola futures saw a rise of $17.60/MT last week, closing at $641.60/MT on the March contract. The week’s jump was supported by a strong performance in soybean oil, which surged 14% over the week. This bolstered the entire oilseed complex, with canola finally catching up on Friday.

The USDA report also played a role, with unexpected cuts to U.S. soybean yield and production. Stocks fell to 380 million bushels, significantly below pre-report estimates of 457 million bushels. Just months ago, carryout estimates were closer to 2 billion bushels, but rising demand and declining production have tightened the market.

Globally, soybean ending stocks were reduced by 3.5 MMT to 128.4 MMT—still a comfortable level—but no changes were made to Chinese import expectations.

Canola’s strong performance highlights its responsiveness to global oilseed trends and provides opportunities for producers and buyers to strategize.

For more information or questions about your grain, reach out to your local Grain Originator.

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