WINNIPEG, (Manitoba): ICE canola futures rose to a record high on Friday, mostly shrugging off a broader sell-off of commodities and equities over fears about a new COVID-19 variant.
Short-covering in the nearby January contract and a weaker Canadian dollar supported canola in light trading volume, a trader said.
“Canola is now trading solo,” he said. “Traders don’t want to short this thing because you can’t get back” into the market. The Canadian crop is smaller this year due to drought. Statistics Canada will issue new production estimates on Dec. 3.
January canola added $5.50 to $1,038.90 per tonne, touching another fresh all-time high.
January-March canola spread traded 3,897 times. US soyabean futures dropped, with losses exaggerated by low trading volume.
Euronext February rapeseed futures and Malaysian February palm oil futures also declined.
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