ICE canola futures surged out of the gate on Monday, following a broader rally in the grain and oilseeds markets. March canola traded $6.90 higher to close at C$610.80 per ton.

Prices briefly tested support below C$600 last Friday before rebounding from their intraday lows. The market may be trying to carve out a bottom since trading at contract lows recently.

Canadian oilseed processors crushed 1.02 million metric tons (MMT) of canola in November, up slightly from a year ago. Year-to-date processings for the calendar year totaled 10.42 MMT, up 0.6 percent from the same period last year.

Canadian canola crush is expected to hit a record this season due to higher supplies and weak exports. The Canadian Grain Commission said that canola year-to-date exports are running 41 percent behind last season as of Dec. 28. Lower export demand has likely led to larger stockpiles compared to a year ago, which won’t be confirmed until later this month.

Meanwhile, U.S. canola crushings totaled 205,500 metric tons in November, down 2.6 percent year-over-year. Accumulated crushings for the marketing year reached 1.20 MMT, down 4.5 percent from the previous season.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.