ICE Canadian canola futures climbed to fresh 28-month highs on Tuesday, catching up to rival oilseeds after the market was closed for Canadian holidays. Nearby canola contract on pace for 43 percent gain in 2010, its biggest yearly gain in four years and well ahead of commodities benchmark Reuters-Jefferies index, up 17 percent on year.
Canola seen with further upside in early 2011 on bullish commodity outlook, strong global oilseed demand. January canola was up $5.40 at $584 per tonne on thin pre-delivery volume of 121 contracts as of 8:27 am CST (1427 GMT). Registered fresh contract high of $584, top price for nearby month on continuous chart since August 21, 2008. Most-active March up $3.50, or 0.6 percent, at $590, volume 1,287. New contract high $592.
Canola early gains in line with gains overnight in Chicago nearby soyabeans, as dry weather in Argentina fuelled concerns about the next harvest [GRA/], and most active March Malaysian palm oil. Nearby Chicago soyaoil and most active May MATIF rapeseed firm. Traders see canola $2 to $3 higher at Chicago Board of Trade open. Canadian dollar was trading at $0.9980 to the US dollar or US $1.00 at 8:24 am CDT (1424 GMT), up from its Friday finish at $1.0064 to the US dollar, or 99.36 US cents. Nearby NYMEX crude oil futures were up 0.5 percent at US $91.46 per barrel.