ICE Canadian canola futures rose on Wednesday to a three-week high after Statistics Canada's forecast for a record-large canola crop fell slightly below expectations. Statscan estimated Canada canola production of 13.2 million tonnes, falling in the range of trade expectations, but about 400,000 tonnes below the average estimate.
Total volume of about 18,800 contracts was the most in nearly a month. Open interest as of Monday was more than 166,000, the highest in more than two months. Funds bought an estimated 2,500 to 3,000 contracts, whittling their net short position as the nearby contract notched its fourth straight gain.
November canola futures gained $2.80 at $562.10 per tonne on volume of 12,237 contracts. Touched $566.50, highest nearby price since August 3. January canola added $3.10 at $570.80 on volume of 2,849 contracts. November-January spread traded 2,138 times, settling at a January premium of $8.70. Chicago September soybeans slipped 3 US cents to US $13.86-1/2 per bushel on profit-taking.
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