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ICE Canadian canola futures rose on Monday, taking strength from gains in soybeans and crude oil. Short-covering seen likely Monday and Tuesday ahead of Wednesday's Statistics Canada report, the government agency's first forecast of crop production based on a farmer survey.
Hot, dry weather forecast for much of Prairies by Environment Canada this week beneficial for harvest, could cap gains - trader. November canola futures gained $2.70 at $557.10 per tonne on volume of 441 contracts. Posted first weekly gain in six weeks last week. January canola added $1.70 at $564.50 on volume of 507 contracts. Traders see canola up $2 to $3 at Chicago Board of Trade open. CBOT soybeans called to open up 13 to 15 US cents per bushel, supported by a weak US dollar and gains in crude oil and equities.
MATIF November rapeseed rose 0.4 percent as of 8:15 am CDT (1315 GMT). The Canadian dollar was trading early around $0.9845 to the US dollar, or US $1.0157, up from Friday's close at $0.9886 to the US dollar, or US $1.0115. NYMEX crude oil gained 2.3 percent early at US $84.12 per barrel.

Copyright Reuters, 2011

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