ICE Canola Futures Rebound After Two-Day Slump Amid Ceasefire Impact

ICE canola futures experienced fluctuations over the past week, influenced by weather conditions, geopolitical developments, and market trends. After a sharp decline early in the week due to widespread rains in Western Canada relieving drought stress and weakness in Chicago soy markets, canola prices dropped significantly, with November contracts falling $17.50 and July contracts down $22. However, on Wednesday, canola futures rebounded as traders viewed the previous selloff as excessive and tight old crop supplies supported prices, despite losses in related vegetable oils like European rapeseed and Chicago soyoil. Technical indicators remained supportive, with the November contract holding above its 20-day moving average and bullish chart signals present. Market participants are closely awaiting Statistics Canada's upcoming seeded area report, expected to show increased canola acreage following strong market performance in May and June. Overall, the canola market has been shaped by a mix of improved weather outlooks, geopolitical ceasefire news affecting crude oil, and anticipated planting intentions.