CHICAGO: ICE canola futures closed firmer on Friday in largely technical trade, brokers said, with the benchmark contract finishing just below an all-time high set mid-week.
Uncertainty about global supplies of vegetable oil continued to underpin the market.
Most-active May canola settled up 50 cents at $1,131.20 per tonne, but stayed inside the previous day’s trading range. The contract set an all-time high of $1,143.70 on Wednesday.
The inverted May-July canola spread weakened, with the May contract reducing its premium over July to $33.20 a tonne, down from $34.30 a day earlier.
Chicago Board of Trade soybean futures closed lower, pressured by improving South American crop weather, but CBOT soyoil futures rose 1.8%, gaining back some ground against soymeal futures on oil/meal spreading.
World vegoil futures were mixed. Euronext May rapeseed futures rose 2.4%, while Malaysian palm oil futures fell 3.6%. A firmer currency hung over the canola market, in theory making Canadian goods less competitive globally.
The Canadian dollar strengthened against its US counterpart as domestic data showing a blockbuster jobs gain raised expectations of a more aggressive than usual interest rate hike next month by the Bank of Canada.
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