ICE Canola Falls Amid Seasonal Harvest Pressure and Weak Demand

The ICE canola market is weaker in morning trading, with prices backing away from overnight gains due to losses in Chicago soyoil. Seasonal harvest pressure and lack of Chinese demand contributed to the softer tone, but oversold price sentiment and lack of farmer selling provided some support. About 10,000 canola contracts had traded as of 9:47 a.m. EDT.

Canola futures on the Intercontinental Exchange (ICE) experienced a downturn in morning trading on September 12, 2025, as prices retreated from overnight gains. The decline was largely attributed to losses in Chicago soy oil, which has a significant influence on canola prices. The weaker tone in canola futures was also partly driven by seasonal harvest pressures and a lack of demand from China, but the market found some support from oversold price sentiment and a lack of farmer selling.

As of 9:47 a.m. EDT, approximately 10,000 canola contracts had traded. The November canola contract settled $4.20 lower at $623.90 per metric ton, while the January contract fell $3.90 to $636.40 ICE canola futures fall amid soyoil weakness^[2]. The Canadian dollar, USDCAD, also weakened against the greenback.

The canola harvest is progressing swiftly on the western two-thirds of the Canadian prairies, but it has been frequently disrupted by rain on the eastern third. Farmers who experienced adequate rain in mid-July are reporting good yields, with cool mid-July weather and abundant rain in August providing optimal conditions for many ICE canola futures fall amid soyoil weakness^[2]. Despite these positive conditions, the slower-than-usual harvest pace is keeping pressure on canola prices.

The Bank of Canada's interest rate cut on Wednesday may also have contributed to the market's stability, as it helps with carry charges. The November canola contract was trading a shade below its 20-day moving average, indicating a slight correction from recent highs.

In contrast, European rapeseed futures on Euronext rose 0.53%, which was seen as a "bit peculiar" by some traders, as canola typically aligns more closely with the Chicago soy complex ICE Canola Midday : Taking Its Cue From European Rapeseed^[1]. Malaysian palm oil futures fell 0.89%, influenced by spillover pressure from Dalian markets and Chicago ICE canola futures fall amid soyoil weakness^[2].