ICE canola surges after US approval for biodiesel use

WINNIPEG: ICE Canada canola futures rose on Thursday after the US government approved Canadian crops for use in making US biodiesel.

* More canola expected to be shipped to the United States after Environmental Protection Agency decision.

* Index funds began rolling November positions into January, adding to inter-month spreading.

* Canola also had spillover strength from stronger soy futures.

* November canola futures rose $9.20, or 1.8 percent, to $535.90 per tonne on volume of 13,796 contracts.

* November earlier dipped to $522.50, lowest price on a nearby continuous chart since Nov. 17.

* January canola rose $9.40 to $546.60 on volume of 6,384 contracts.

* November-January spread traded 5,957 times, settling at a January premium of $10.70.

* Chicago November soybeans rose 6-1/2 US cents to US$12.30 per bushel. October soyoil added 0.08 cent to 51.63 US cents per lb.

* MATIF November rapeseed slipped 0.6 percent.

* The Canadian dollar was trading at $1.0380, or 96.34 US cents, at 1:43 p.m. CDT (1843 GMT), down from Wednesday's North American session close of $1.0326 against the greenback, or 96.84 US cents.

* US crude oil settled up 1.2 percent to US$82.14 per barrel.

* Saskatchewan canola harvest 89 percent complete.

Copyright Reuters, 2011