ICE Canadian canola closed at a two-month high Tuesday on an active trading day of almost 20,000 contracts, as farmers accelerated selling and found crushers and funds willing to buy, traders said. The buoyant Chicago Board of Trade soyabean complex is fuelling much of the interest in canola.
Crushers are taking advantage of favourable margins based on rising soya oil, combined with relatively low-priced canola and a still-low-valued Canadian dollar, traders said. Funds traded about 3,000 contracts, mostly as buyers, traders said.
The May/July spread traded 4,490 times between $4.40 and $5.50 under the July; the July-November spread had volume of 1,277 with trading between $3.10 and $5 under. May canola closed $3.90 higher at $434.80 per tonne on volume of 8,048; July rose $3.50 to $439.50 on 9,898 contracts; November canola went $4.10 higher to $444.10 on volume of 1,680.
CBOT May soyabeans finished up 14-1/2 US cents at US $10.36 a bushel as demand continues to be high, especially from China, while US stocks are low. CBOT August soya oil finished up 0.90 US cent to 37.42 US cents per pound. Mild pressure on canola came from oil and the Canadian dollar.