ICE Canadian canola futures fell 1.1 percent on Monday, dragged lower by weakness in US soya futures and crude oil that prompted modest selling by local speculators, traders said. Canola volume totalled 12,000 contracts, the lowest in one week, in tight-ranging trade. Uncertainty about a new quake in top canola buyer Japan left some investors on the sidelines - trader.
Soya futures weighed down by the harvest of a bumper crop in South America and concerns that China might slow soya buying. May canola premium over new-crop November fell to a 10-month low of $3.80, as melting snow raises flooding concerns ahead of planting in Western Canada.
Farmer cash selling has been brisk, bringing commercial hedges to market at times. As of April 3, farmers delivered 9 million tonnes canola, up 20 percent from year-ago pace - Canadian Grain Commission. May canola down $6.70 or 1.1 percent at $582.20 per tonne, on volume of 6,980 contracts. July down $6.80 at $591.00, volume 3,368. May-July spread traded 2,217 times, with July premium ranging from $8.70 to $9.10.
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