WINNIPEG – The ICE Futures canola market was surging on Monday, the day after OPEC+ members announced they will cut crude oil production by more than one million barrels per day starting in May.
Crude oil was up more than US$4 per barrel in response to the reduced output. The upcoming production cuts also supported prices for Chicago soyoil, Malaysian palm oil and European rapeseed.
One analyst believes the cuts were due to declining crude oil prices in March. The analyst also thinks they could cause canola to surpass the psychological level of C$800 per tonne.
The Canadian dollar was up four-tenths of a United States cent compared to Friday’s close.
Nearly 25,198 canola contracts were traded as of 10:25 CDT.
Price Change
May 784.70 up 16.80
Jul 767.40 up 17.90
Nov 738.10 up 17.10
Jan 739.80 up 15.80
