Canadian canola posts biggest yearly gain in four years

02 Jan, 2011

ICE Canadian canola futures rose on Friday, finishing off 2010 with the biggest yearly gain in four years. Registers yearly gain 43 percent, quarterly gain 22 percent, monthly increase of 8.8 percent. Weather problems in Canada and Argentina, expansion of Canada domestic crush and global oilseed demand have boosted canola in 2010.
If significant rain comes in next 10 days in Argentina, oilseed prices could see downward correction-traders. Friday's gains came with support from Chicago soya futures and concerns about dry conditions for Argentina's soyabean crop, but canola kept in check by strong Canadian dollar, traders said.
Total volume of 4,007 contracts is smallest in nearly six months and less than half the volume from the same date a year ago. Lack of new export business seen, modest crusher buying and slow farmer selling. January canola ended up $9.20 or 1.6 percent at $583.80, volume 103, close to recent two-year highs.

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