ICE Canadian canola futures roared to their highest nearby price in two years on Monday with spillover support from outside markets, before lagging demand and commercial hedges slashed gains, traders said. Killing frost across much of Canadian Prairies during weekend not a factor, traders said, after risk priced in last week.
Support seen from CBOT soybeans, with November, ending up 15-1/2 US cents at US $10.84-1/2 per bushel, boosted by dry weather concerns in South America. Soy influences canola because of common edible oil market. MATIF November rapeseed up 1 percent. Technical buying of 2,000 November contracts seen.
November closed up 80 cents at $477 a tonne, on volume of 11,480 contracts. Closes on day's low. Touches $484.50, highest price since September 25, 2008, extends winning streak to six days. January up 90 cents at $481, volume 2,853. November-January spread traded 2,231 times, settling at $4 premium January.
The Canadian dollar was trading at $1.0286 to the US dollar, or 97.22 US cents as of 1:18 pm CDT (1818 GMT), up from Friday's finish at $1.0314 to the US dollar or 96.96 US cents. Light crude oil futures, linked to canola through their use in biofuels, up US $1.40 at US $75.06 per barrel. Ukraine 2011 rapeseed area may fall 15 pct -analyst.