ICE Canadian canola futures shot to their highest nearby price in 2-1/2 years on Tuesday, led higher by rival oilseed soyabeans, which rose as a winter storm in the United States boosted feed demand. Contract highs set for all actively traded months, including March, May, July, November. New levels spurred modest speculator buying-trader.
Intermonth spreading accounted for a large portion of trading volume. Total trading volume of more than 25,000 contracts, most in nearly three weeks. Talk of recent export sales also lifted canola, but stronger Canadian dollar weakened crush margins-trader.
March ended up $5.40 or 0.9 percent at $609, on volume of 14,779 contracts. Touched $610.40, highest price since July 31, 2008. May up $5.30 at $617.70, volume 7,635. March-May spread traded 7,352 times, settling at $8.70, premium May. Old-crop/new crop, March-November spread also active, trading 348 times to settle at $27.70 premium March as spread narrows.
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