Canadian canola futures rallied on Wednesday after US soya spiked up its daily limit on concerns Argentine farmers could again strike and as crude oil futures hit a record high, traders said. "We're just along for the ride, here," a trader said.
ICE canola futures ended $40.70 to $44.40 per tonne higher, with May up $44.10 at $655, July up $41.50 at $665.20 and November up $43 at $668. Crushers were buyers as the allied soyabean oil market made gains, traders said. Commercials and commission houses covered short positions, and farmers sold into the rally. May soyabean oil was up 2.23 US cents per pound at 58.07 US cents and May soyabeans were up 61-1/2 US cents per bushel at US $13.13.
Funds bought an estimated 2,000 July canola contracts, a trader said, but another trader said funds were sidelined, apart from rolling forward positions. An estimated 2,874 May/July traded from $11.50 to $13.10, 150 May/November from $13.70 to $14.30 and 855 July/November from 50 cents to $1.50.
Canola volume was estimated at 14,249 contracts, up from a total of 9,919 on Tuesday. In canola options, 515 May $640 calls traded at $10 and $10.50. May barley settled $2.60 per tonne higher at $240.60 and July was down 90 cents at $246.10. An estimated 97 May/July spread traded from $5.50 to $9.