WINNIPEG: ICE Canadian canola futures jumped on Monday to a fresh record high, boosted by short-covering and strong demand from exports and Canadian crushing.
Most-active May canola gained $17.70 to $753.20 per tonne, with higher Chicago soyaoil prices helping push canola up. The March contract, trading in thin volume as open interest dwindles ahead of expiry next month, jumped to a fresh nearby record high of $803.50 as investors closed short positions.
Investors are suffering losses covering nearby shorts at high prices, resulting in the front month trading at a rare steep premium to deferred contracts, a trader said.
May-July canola spread traded 3,245 times.
US soyabean futures rose on support from harvest delays in South America.
Euronext May rapeseed futures eased and Malaysian May palm oil futures edged higher.
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