Canadian canola futures fall

09 Apr, 2011

ICE Canadian canola futures fell on Thursday for the fourth time in five days, hit by concerns over another earthquake in key importer Japan and profit-taking before a US crop report, traders said. Canola was volatile in total volume of 14,600 contracts, with the nearby month trading in a more than $10 range.
Wet planting conditions caused old-crop July premium over new-crop November to slip. Rain or snow forecast Thursday and Friday for parts of southern Manitoba and Saskatchewan. US Agriculture Department expected on Friday slightly to lower US soyabean ending stocks for 2010/11. Soya traders took profits and canola investors followed.
Japan quake measured at 7.4, but no tsunami reported or damage at Fukushima nuclear plant. May canola down $5.20 at $582.10 per tonne, on volume of 9,017 contracts. July down $5.40 at $590.70, volume 4,363. New-crop November down $5.00 at $575.40 on volume of 1,111 contracts. May-July spread traded 3,796 times, with July premium ranging from $8.60 to $8.90.
Chicago May soyabeans ended down 13 US cents at US $13.63-1/2 per bushel. May soyaoil down 0.46 cent at 58.32 US cents per lb. The Canadian dollar was trading at $0.9593 to the US dollar or US $1.0424 as of 1:16 pm CDT (1816 GMT), up from Wednesday's close at $0.9604 to the US dollar, or US $1.0412. NYMEX crude oil futures settled up US $1.47 at US $110.30 per barrel.

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