Canola futures climbed to their highest since July this week amid a surge in crude oil and rival feedstock prices. Futures gained more than C$11 by midday on Thursday, trading as high as C$720 per ton. Surging crude oil and soybean oil prices were supportive factors amid the ongoing conflict in the Middle East.

Canola futures had already been rallying ahead of the escalations in the Middle East. The expectation of friendly biofuel policy in the U.S. benefited vegetable oil prices over the past couple of months. Soybean oil futures rallied to fresh contract highs this week. The sharp rally could help drive more acres into canola this year, as the planting season is just around the corner.

Canadian farmers are expected to increase their canola plantings by 1 percent in the upcoming season to 21.87 million acres, according to Statistics Canada on Thursday. That is roughly in line with the five-year average. Some of those acres are likely coming from wheat after a season of softer prices.

The agency said higher anticipated plantings may be led by strong domestic processing demand. Canola seed processing was a record in 2025, according to StatsCan.

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