ICE Canadian canola futures rose on Thursday with crusher buying, but slightly lagged gains in US soyabeans due to modest liquidation by funds and hedge selling by commercials, traders said. Support for canola spilled over from stronger Chicago soyabean futures, which rose on strong export sales and concerns about labour disputes at a key port in Argentina. Funds sold about 1,000 May canola contracts from their net long position, with the month staying under the 50-day moving average-trader.
Light total canola volume of less than 15,000 contracts. Most-active May ended up $6.00 or 1 percent at $596.10, volume 9,262. Touched nine-day high of $597.40. July up $5.60 at $603.10, volume 2,792. No deliveries of March on Thursday. Open interest down to 478 as of Wednesday.
May-July spread traded 1,905 times, with July premium ranging from $6.90 to $7.50. Chicago May soyabeans settled up 17-3/4 US cents or 1.3 percent at US $14.12 per bushel. Soyabeans and canola are linked through vegetable oils market and both follow crude oil prices due to use in biofuels.
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