Canola futures pushed to a two-month high this week since trending higher from the October low. January canola traded around C$655 per ton, holding onto Monday’s sharp gains. Technically, canola futures have been developing a firmer tone since posting a six-month low on Oct. 1. This week’s price action showed the first signs of reversing the downtrend established by the summer highs.

Fundamentally, canola demand remains relatively low due to lackluster Canadian shipments to China. The ongoing trade dispute for the country has been a negative factor on the market. Lower export demand is expected to keep crush rates elevated. Statistics Canada reported that crushings for the first nine months of the year are running 1.6 percent ahead of last year at a record pace of 8.37 million metric tons.

The oilseed markets are still waiting on the U.S. Environmental Protection Agency to release its biofuel blending policies for 2026 and 2027. The finalized rule could still favor canola oil imports from Canada. However, the delayed release continues to hold uncertainty over the biofuel industry.

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