ICE Canadian canola closed higher Monday as support from rising soyabean prices overcame a stronger Canadian dollar and weaker oil price that weighed on canola. The May/July spread traded 2,139 times between $3.60 and $5.80 under the July; the July-November spread had volume of 498 with trading between $3 and $5.50 under.
In contrast, soyabeans were trading with a premium for the front month in the spread, pointing to a shortage of the oilseed, traders said. That should support canola, but traders said there are few buyers in the market right now other than crushers. May canola closed $2.40 higher at $430.90 per tonne on volume of 4,429; July rose $2.80 to $436 on 2,604 contracts; November canola went $3.20 higher to $440 on volume of 888.
CBOT May soyabeans finished up 14-1/2 US cents at US $10.21-1/2 a bushel with support from strong export demand. At 13:20 CDT (1820 GMT) light crude oil was trading US $1.87 lower at US $50.37 per barrel after the International Energy Agency lowered its forecast for oil demand.
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