Winnipeg Commodity Exchange canola futures were mainly higher on Thursday, supported by talk of export business to China and by stronger soybean and crude oil markets, traders said. Canola ended 90 cents per tonne higher to 10 cents lower, with July up 90 cents at $375.70 and November up 20 cents at $391.10.
One cargo of canola was believed to have been sold to China for delivery in June or July, traders said, although the business could not be confirmed. The interest could lead to more sales, supporting the market. "When they buy one cargo, there could be two or three," a trader said.
An estimated 3,560 July/November spread narrowed to trade from $15.30 to $16.80, reflecting the export-related buying. Soybean oil futures at the Chicago Board of Trade reached fresh contract highs, partly because crude oil markets also surged.
July soybean oil ended 0.26 US cent per lb higher at 34.99 cents while July soybeans settled unchanged at US $7.92-3/4 per bushel. Crushers were also buyers of new-crop canola, while strength in the Canadian dollar and modest farmer hedges capped gains, traders said. Some traders said funds were sidelined, while others thought they were small buyers.
There were no signs that a strike of track maintenance workers at Canadian Pacific Railway, Canada's second-largest railway, was slowing down canola shipments, traders said. The Canadian Wheat Board said 31 percent of crops were planted in Western Canada as of Monday, down from the 10-year average pace of 38 percent.
Fields in central and northern Alberta were still too wet for planting, the CWB said. Volume was estimated at 15,329 contracts, down from a total of 21,156 on Wednesday. Open interest in canola reached a record high of 113,348 contracts after Wednesday's session, topping the previous record of 110,404 set in February. Barley futures were higher in thin trade, with July up $2.50 per tonne at $178 and October up $1.60 at $138.
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