ICE Canada canola futures closed higher on Friday following the weather-related spike in US soybeans, but the soaring Canadian dollar capped gains, traders said. Front-month canola rose 1.5 percent, lagging the 3 percent jump in benchmark soybeans. Cold, snowy Prairie weather with much of the Saskatchewan crop still unharvested drove up buying heading into the long weekend.
Grain companies and crushers were buyers, a trader said. November canola rose $5.50 to end at $382.30 per tonne on volume of 9,464 contracts. The contract touched an 11-day high of $386.80 January added $5.50 to settle at $387.30 with a volume of 3,215 contracts.
The November-January spread traded 3,075 times with a premium on January between $4 and $5.30. The ICE Canada market is closed Monday for the Canadian Thanksgiving holiday. CBOT November soybeans closed up 28 US cents at US $9.64 a bushel, with support from excessive wet weather and forecasts for a freeze in the US harvest region.
US Department of Agriculture supply/demand report pegged US soybean production and ending stocks below an average of analysts' estimates. The spread between canola and soybeans widened during the week, making canola more attractive if the Canadian dollar weakens, a trader said.
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