ICE Canadian canola futures were higher on Friday as short-covering and bargain buying lifted prices in the technically oversold market ahead of the weekend, traders said. Commodity funds hold a large short position in canola, leaving the market vulnerable to bouts of short-covering if fresh fundamental news is lacking, as it was on Friday. Farmer sales to elevators and processors were very light as prices are hovering just above recent lows. That limited hedge selling in futures.
The most-active May canola contract settled $3.60 higher at $464.80 per tonne. The contract rose 1.6 percent in the week, its first weekly gain in five weeks. July canola was up $3.50 at $472.90, notching a 1.5 percent weekly gain. Chicago May soyabeans finished 10-3/4 US cents higher at US$9.09-1/4 per bushel. Malaysian May palm oil futures were up 0.19 percent on Friday after setting a contract low earlier in the session.
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