ICE Canadian canola futures ended higher on Tuesday as a weaker Canadian dollar made exports more attractive and farmer selling was light, traders said. Canadian dollar sank to lowest level in seven weeks after weak Canadian retail sales data.
Funds sold 5,000 November contracts, continuing to cut net long position on technical weakness and capping canola's gains-trader. November closed up $4 at $444.60 a tonne, on volume of 12,828 contracts. January up $4.20 at $448.90, volume 1,937. November-January spread traded 1,605 times, settling at $4.30 premium January.
CBOT September soybeans, which influence canola through common edible oil market, down 7-1/2 US cents at US $9.99-1/2 per bushel. September soyoil rose 0.23 US cent to 39.48 US cents per lb. The Canadian dollar was trading at $1.0598 to the US dollar, or 94.36 US cents as of 1:20 pm CDT (1820 GMT), down from Monday's close at $1.0523 to the US dollar, or 95.03 US cents.
Light crude oil futures, linked to canola through their use in biofuels, down US $1.46 at US $71.64 per barrel. Canada's canola crop improving, forecast raised to 10.5 million tonnes, up by 500,000 tonnes from July estimate-Oil World. Rain holds back harvest in Manitoba.
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