Canadian canola futures were strong relative to the US soya complex on Monday after farmer selling dropped off and on short covering ahead of a Statistics Canada report, traders said. ICE canola futures settled $3.80 per tonne higher to $1.90 lower, with July up $3.40 at $662.90, November up $3.50 at $688.20 and January up $3.80 at $699.20.
Routine crusher and exporter buying was reported, and stronger crude oil futures helped pull vegoils off earlier lows, traders said. Farmer hedges were quiet. "That's why our market was so firm relative to the US," a trader said. At the Chicago Board of Trade, July soyabean futures were down 17-1/2 US cents per bushel to US $15.15 and July soyaoil was down 0.61 US cent per pound at 63.27 US cents.
Unconfirmed reports on Friday that Canada had sold one cargo of canola to Dubai continued to provide some support, a trader said. Statscan was slated to release its preliminary estimate of seeded area on Tuesday at 7:30 am CDT (1230 GMT). Canola estimates from traders surveyed by Reuters averaged 14.8 million acres and ranged from 14.6 million to 15.2 million acres.
Last year farmers planted 14.726 million acres, and Statscan said in April that farmers intended to seed 14.805 million acres this spring. An estimated 2,106 July/November spreads traded from $24.10 to $25.50 and 1,595 November/January from $10.50 to $11.50.
Total canola volume was estimated at 11,842 contracts, up from a total of 8,937 on Friday. Barley futures ended lower in thin volume, with July down $5 per tonne to $245 and October down $2.40 at $255. Barley volume was 119 contracts, down from 160 on Friday.