CHICAGO: ICE Canadian canola futures climbed to life-of-contract highs on Friday, lifted by a mix of fund-driven buying, commercial short-covering and a lack of farmer sales, traders said. Spillover strength from allied US soy markets on technical buying and worries about South American crop prospects added to bullish sentiment.
Most-active January canola settled up $4.10 at $551.00 per tonne, after posting a contract high at $552.30.
Front-month November ended up $4.40 at $550.00 after reaching a contract high at $550.90. The November-January canola spread traded more than 3,700 times as investors rolled positions forward ahead of the November contract's expiry next month. On the Chicago Board of Trade, the benchmark November soyabean futures contract peaked at US$10.88-1/2 a bushel, the highest for the most-active contract on a continuous basis since July 2016, buoyed by demand from exporters and domestic processors.
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