ICE Canadian canola futures closed higher on Wednesday as both Canadian and US currencies turned favourably weaker, traders said. Exporter and crusher buying seen as weaker Canadian dollar makes exports more attractive and supports crush margins. Weaker US dollar supportive to US futures that influence canola. Chicago soyaoil, tied to canola through edible oils, rose, soyabeans fell slightly.
July up $2.80 at $375.60; volume 7,478 lots. Set contract low early of $370.50. July lower than key moving averages but 14-day RSI is 38, close to indicating oversold. New-crop November up $4.60 at $383.30; volume 7,674. Biggest one-day percentage gain for month since February 16. July/November spread traded 4,713 times from $5 to $7.80, premium November. Heavy volume seen partly due to commercials covering July shorts; spread still far from full carrying cost.
CBOT July soyabeans ended down 1 US cent at US $9.38-1/2 per bushel. CBOT July soyaoil up 0.31 cent to 37.50 US cents per lb. Canadian dollar was trading at $1.0452 to the US currency, or 95.68 US cents as of 1:06 pm CDT (1806 GMT), down from Tuesday's close at $1.0370 or 96.43 US cents. Light crude oil futures up 35 US cents at US $69.76 per barrel.
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