ICE Canadian canola futures closed higher on Tuesday as exporters covered shorts and the market got spillover support from stronger soy futures, traders said. Commercial hedge pressure held gains in check. Some of Canada's driest crop areas are forecast to receive heavy snow into Wednesday. Traders said the favourable forecast for planting was not a major factor in trading.
May canola ended up $2 at $381.80 per tonne; volume 5,578 contracts. July rose $1.70 at $387.90; volume 5,034 lots. Open interest seen exceeding nearby contract within 1-2 days as positions roll forward. May/July spread traded 2,917 times from $6 to $6.70, premium July.
July/November spread traded 631 times from $1.60 to $4.70, premium November. CBOT May soybeans ended up 8 US cents at US $9.68 per bushel. CBOT May soyoil gained 0.15 cent to 39.74 US cents per lb. The Canadian dollar was trading at $1.0016 to the US currency, or 99.84 US cents, at 1:08 pm CDT (1808 GMT), up from Monday's close at C$1.0033, or 99.67 US cents. Light crude oil futures were down 16 US cents at US $84.18 per barrel. EU rapeseed plantings developing well, but the crop is unlikely to reach last year's record harvest.