Canadian canola futures sailed to fresh contract highs on Tuesday as vegetable oils soared on demand from China and as US crude oil futures climbed to a new record, traders said. "People are just not selling anything," a canola trader said, noting a lack of hedges and speculative selling helped propel the market higher.
ICE canola settled $16.50 to $24.40 per tonne higher, with March up $16.50 at $665.90, May up $16.90 at $679.30, July up $18.10 at $691.90 and November up $18.70 at $670.20. Earlier in the session, March reached a high of $668.40 per tonne and May $681.70. Crushers were featured buyers along with commission houses, traders said, but exporters were sidelined.
Severe winter storms hurt China's rapeseed crop, and the soya complex was boosted by rumours that China had bought more than 10 cargoes of South American soyabeans and as much as 100,000 tonnes of South American soyaoil.
At the Chicago Board of Trade, March soyabean oil was up 1.64 US cents per pound at 60.21 US cents and March soyabeans were up 24-3/4 US cents per bushel at US $13.98-1/2. Spreads continued to dominate canola volume, with 7,896 March/May trading from $11.70 to $13.90, 1,049 March/July from $25 to $26.60, and 952 May/July from $10.90 to $12.70.
Total canola volume was estimated at 25,368 contracts, down from a total of 28,426 on Friday. Barley futures were higher in line with CBOT corn strength, a trader said, with March up $3.80 per tonne at $216.70, May up $2.40 at $220.80 and October up $2.50 at a new contract high of $232. Strong wheat and canola prices mean that barley plantings may remain flat this year, accounting for some of the strength in new-crop futures, a trader said.