Canadian canola futures higher

30 Jul, 2008

Canadian canola futures settled higher on Monday after choppy US soya futures turned higher, with crushers seen as the best buyers and light fund selling noted, traders said. "Every time bean oil was making a new high, crushers were buyers," a trader said.
ICE canola futures ended $2.20 to $4.20 per tonne higher, with benchmark November up $2.20 at $604.60. "We just followed the US market around," a trader said. At the Chicago Board of Trade, August soyabeans were up 1-1/2 US cents at US $14.00-1/4, and August soyaoil was up 0.13 US cent per pound at 59.30 US cents.
Funds sold an estimated 500 contracts, traders said. Some traders believe commodity funds are still liquidating long positions, while others believe they have gone short canola. Farmer selling was light, and exporter buying was also limited, traders said.
Small speculators and commission houses were on both sides of the market, traders said. An estimated 578 November/July spreads traded from $11 to $11.90. Volume was estimated at 7,091 contracts, down from a total of 9,038 on Friday.

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