ICE Canadian canola futures closed higher on Tuesday to reflect two days of strong gains in soya futures, traders said. Chicago soya futures, which influence canola prices because of common uses, gained 3 percent on Monday when the ICE Canada market was closed and finished 0.9 percent higher on Tuesday. Crusher buying also supported the market.
The stronger Canadian dollar pressured export-driven canola. Key March canola rose $7.20 to settle at $410.80 per tonne on volume of 8,263 contracts. Front-month January canola settled up $5.80 at $404.50 per tonne with a volume of 1,254 contracts. The January-March spread traded a light 977 times with a premium on March between $5 and $7.
The relatively large flat-price volume suggests renewed demand for canola, a trader said. March rose past several moving averages, boosting the market's previously weak technicals. Positive bias seen for Wednesday trading with crude oil firm and soya futures rising. CBOT January soyabean futures settled up 9 US cents at US $10.38 per bushel.