ICE Canadian canola futures rose on Thursday in seeming lock-step with US grains and soya futures, finishing with a 1.8 percent gain for the four-day work week. Canola took spillover strength from US markets, but lagged gains in soyabeans, which climbed on weakness in the US dollar and fund buying.
Position squaring seen ahead of three-day weekend and Tuesday planting report from Statistics Canada. Modest commercial hedges may also have trimmed gains-trader. Wet conditions and planting delays support canola, but Western Canada weather turning dry, warmer this week. Total volume of about 26,600 contracts was largest in three weeks, with most activity in inter-month spreading. May canola rose $4.50 or 0.8 percent at $578.50 per tonne, on volume of 9,601 contracts.
July up $4.40 at $588.20, volume 11,140. New-crop November up $5.50 to $588.30 on volume of 5,636 lots. May-July spread traded 6,425 times, with July premium settling at $9.70. July-November spread also active, trading 3,631 times and settling at a carrying charge, 10 cents, for first time in 10 months. Focus turning to planting concerns for new crop.
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