ICE Canadian canola futures closed higher on Tuesday as higher soya futures blunted the impact of the Canadian dollar rising to parity with the US greenback, traders said. Crushers and exporters seen buying canola despite high dollar as soya values keep crush margins steady and exporters price old sales. Canadian dollar has risen more than 5 percent against US dollar this year.
Dryness concerns ahead of planting in Western Canada seen limiting farmer selling, offering support. May canola ended up 90 cents at $380.80 per tonne; volume 8,426 contracts. July up $1 at $386.80; volume 3,114 lots. Nearby canola trading in tight range since mid-January. May/July spread traded 2,388 times from $5.50 to $6, premium July.
July/November spread traded 824 times from $1.20 to $4.50, premium November. CBOT May soyabeans ended up 8-1/2 US cents at US $9.44-1/2 per bushel. CBOT May soyaoil rose 0.42 US. cent to 39.77 US cents a lb.
The Canadian dollar slipped just below parity to trade at $1.0004 to the US currency, or 99.96 US cents, at 1:08 pm CDT (1808 GMT), up from Monday's finish at C$1.0028, or 99.72 US cents. Light crude oil futures were down 8 US cents at US $86.54 per barrel. Canadian farmers in parts of Alberta and Saskatchewan have started planting wheat and peas a week to 10 days ahead of normal.
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