ICE Canadian canola futures shot to their biggest daily absolute gain in nearly 14 months on Friday after the US government released bullish corn and soyabean data, traders said. Canola lagged percentage gains in Chicago Board of Trade corn, soyabeans and wheat futures, all of which hit daily maximum trading gains.
Commercial hedges ahead of three-day weekend in Canada and profit-taking limited gains. Canola notched contract highs in nearby and deferred contracts. November closed up $15 or 3 percent at $488.30 a tonne, on volume of 14,665 contracts. Hit ceiling at $500 - a two-year high for nearby contract - but should clear that level with continued CBOT strength next week-trader.
November ends week up 4.3 percent. January up $14.90 at $497.50, volume 11,549. Total volume of about 30,000 contracts was biggest in nearly four months. November-January spread traded 6,077 times, settling at $9.20 premium January, highest premium on second nearby month in 16 months as funds rolled positions forward.
CBOT November soyabeans ended up the limit 70 US cents at US $11.35 per bushel. Soya influences canola because of common edible oil market. The Canadian dollar was trading at $1.0140 to the US dollar, or 98.62 US cents as of 1:08 pm CDT (1508 GMT), up from Thursday's close at $1.0185 to the US dollar, or 98.18 US cents.
NYMEX crude oil futures, linked to canola through use in biofuels, down 98 US cents at US $82.65 per barrel. Sharply lower yields across the US Corn Belt mean a 4 percent smaller crop than the record forecast a month ago and the tightest corn supply in 15 years -US Department of Agriculture. US soyabean production forecast at 3.408 billion bushels, below trade expectation of 3.475 billion bushels. Canada weekly canola crushings up 18 pct.
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