WCE canola climbs with allied soya

Canola futures on the Winnipeg Commodity Exchange made strong gains Thursday on short covering fuelled by strength in crude oil, soybean oil and European rapeseed markets, traders said. Some traders speculated exporters were covering business ahead of what could be a volatile session on Friday, but no new sales could be confirmed.
Canola settled $5.30 to $9.20 per tonne higher, with May up $6.10 at $366.50, July up $6.10 at $376.30 and November up $5.30 at $390.40. Crushers were noted buyers. Some traders said funds were net buyers, covering short positions, while others saw funds on both sides of trade.
Some traders said farmers were sellers as the market rallied, while others said farmer selling has dried up Position-evening was a feature ahead of the US Agriculture Department's plantings report on Friday morning, which could have an explosive effect on allied soya futures.
Traders were also anticipating funds to roll forward a large portion of their nearby position on Thursday. At the Chicago Board of Trade, May soyoil ended 0.56 US cent per lb higher at 32.97 US cents and May soyabeans were up 7-1/2 US cents per bushel at US $7.78-1/4. Canola traders said 2,933 May/July spread traded from $9.60 to $10.20, with 1,643 July/November from $13.10 to $14.50 and 113 November/January from $8.50 to $8.70.
Volume was estimated by the exchange at 15,980 contracts, up from a total of 9,795 on Wednesday. Barley futures were firm on light new-crop buying interest. Traders said the renewed interest from end users was due to news on Wednesday that Ottawa plans to end the Canadian Wheat Board's monopoly on malting and export barley by August 1. May barley was up 70 cents per tonne at $186.10, with July up 20 cents at $194.80 and October up 80 cents at $150.80.
An estimated 137 May/July spread traded from $8.50 to $9.10. Barley volume was estimated at 471 contracts, down from 1,104 on Wednesday. Long liquidation and a lack of end user buying weighed on feed wheat futures, with May down $1.50 at $156.70 and July down $1.20 at $163. Feed wheat volume was estimated at 346 contracts, up from zero on Wednesday. Most volume was done through spreading, with 124 May/July from $6.30 to $6.50 and 24 May/October at $10.