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ICE Canadian canola futures rose on Friday, tracking stronger soybean prices and with short-covering support, traders said, but ended with a small weekly loss. Soybeans rose on news of the biggest November US soybean crush in nearly three years. Commercial funds covered some of their large net short position in January canola, with the nearby contract flirting with the 50-day moving average.
Commercial hedges against farmer sales remained light, traders said. Year to date Canadian Grain Commission data shows that farmer deliveries were ahead of the year ago pace as of December 9, however. January canola added $7.80 to $598 on volume of 9,008 contracts. Ended the week down 0.1 percent. March canola rose $7.50 to $594.50 on volume of 7,998 contracts.
January-March spread widened to a January premium oof $3.50, trading 5,438 times Chicago Board of Trade January soybeans gained 19-1/2 US cents to US $14.96 per bushel. Canadian dollar was trading at $0.9861 against the US dollar or US $1.0141 at 1:41 pm CST (1941 GMT), little changed from Thursday's close at $0.9848 versus the US dollar, or US $1.0154.

Copyright Reuters, 2012

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