Canadian canola surges on USDA data

ICE Canadian canola futures spiked on Thursday, posting a quarterly gain after US Agriculture Department data showed shrinking stockpiles of US soyabeans and corn. Nearby canola posted quarterly rise of 1.6 percent - its fourth straight increase - and a monthly gain of 3.6 percent.
Sharply higher Chicago corn, soyabeans and wheat futures, offered spillover support to canola, but its gains lagged the US futures. Total canola volume of about 28,200 contracts was largest in five weeks. Commodity funds bought about 3,000 contracts, moving to net long position on technical strength-trader.
May canola ended up $9.40 or 1.6 percent at $593.30 per tonne, on volume of 16,203 contracts. Touched $603.40, highest price on continuous chart for nearby contract since February 14. May posted nearby contract's biggest daily rise in nearly two weeks. July up $9.70 at $602 on volume of 7,734 contracts. Heavy farmer selling, triggering commercial hedges, and profit-taking trimmed gains in late trading.
Canola rally seen continuing on Friday with corn signalling in synthetic trade another sharp rise. May-July spread traded 6,443 times with the July premium ranging from $8.20 to $8.70. USDA said US soyabean stockpiles were 1.249 billion bushels at March 1, shrinking faster than expected, while it pegged US plantings at 76.609 million acres, less than expected.
Chicago May soyabean futures ended up 2.8 percent to US $14.10-1/4 per bushel. May soyaoil up 2.6 percent to 58.78 US cents per lb. NYMEX crude oil futures settled up 2.4 percent at US $106.72 per barrel. The Canadian dollar was trading at $0.9694 to the US dollar or US $1.0315 as of 1:10 pm CDT (1810 GMT), up from Wednesday's close at $0.9713 to the US dollar, or $1.0296.