ICE Canadian canola futures rose on Wednesday as investment funds scrambled to cover short positions with the market holding support above key technical points, traders said. The benchmark May contract has risen for seven straight sessions, gaining 7 percent during the rally.
Canola's technical strength overwhelmed pressure from a weakening US soybean market. The May contract rose $2.80 to $451.70 per tonne on volume of 15,400. May-July spread narrowed to July premium of $9.60, trading about 3,290 times. July-November, which traded 3,164 times, widened by 10 cents to $16.60, premium November. Chicago May soybeans fell 2-1/2 US cents to close at US $14.20-1/2 per bushel.
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