WINNIPEG, (Manitoba): ICE canola futures rose on Wednesday on spread trades against collapsing soybean oil prices, and with US weather concerns pushing soybeans higher.
Traders were buying canola and selling soyoil - which fell the daily limit following disappointing US biofuel mandates - in spread trades aimed at cashing in on canola’s relatively lower price, a trader said. Most-active November canola gained $5.80 to settle at $720.60 per metric ton, after earlier touching a six-day low.
Industry sources expect, on average, Statistics Canada next week to estimate Canadian canola plantings of 21.8 million acres, up from 21.4 million last year. The July-November canola spread, the most active inter-month spread, traded 9,932 times.
Chicago Board of Trade soybean futures jumped 2.6% as the market rallied on support from a government report that showed the condition of the US crop was worse than expected after a stretch of dry weather.