WINNIPEG, (Manitoba): ICE canola futures rose on Friday for a second straight session, pulled higher by big gains for rival vegetable oils, palm and soyoil.
Canola’s gains lagged other commodities because of spreads, where traders buy soybeans and sell canola and make profits on the difference, a trader said.
June weather conditions are now in focus, with most of the Canadian crop planted. Most-active November canola gained $3.90 to settle at $637.60 per tonne. July-November canola spread, the most active inter-month spread, traded 7,356 times. US corn and soybean futures rose on bargain-buying following this week’s multi-month lows and due to dryness in the Midwest crop belt. Euronext August rapeseed futures also climbed. On Thursday, ICE canola futures rose, ending a three-day losing streak, lifted by strength in crude and soyabean oil. Canola’s gains lagged those of soyabeans and soyaoil, due to limited demand from Canadian exporters and crushers, a trader said.
Canadian farmers may have increased canola sales to commercial buyers recently over fears that prices would continue their downward trend, adding further pressure on the market, a second trader said.
Most-active November canola gained $8.90 to settle at $633.70 per tonne.
July-November canola spread, the most active inter-month spread, traded 9,884 times. In the Canadian province of Saskatchewan, 89% of the overall crop has been planted, slightly behind the five-year average of 92%, the provincial government said.