ICE Canadian canola futures eased on Thursday, whittling down a big yearly gain in thin holiday-season trading. Position evening seen ahead of shortened trading session on Friday and holiday Monday. Long liquidation as year ends seen weighing on market, but crushers buying with margins strong.
Total volume of about 7,700 contracts is smallest in four months and 8 percent lower than volume on same date a year ago. Inter-month spreading made up nearly two-thirds of total volume as investors move January positions forward. January canola ended down $2.70 at $574.60, volume 1,886. Nearby contract on pace for 41 percent yearly gain, biggest in four years.
Most-active March down $2.10 at $583.80, volume 4,227. January/March spread traded 1,740 times, settling at $9.20, premium March. CBOT January soyabeans unchanged at US $13.66 per bushel. January soyaoil was up 0.23 cent at 56.61 US cents per lb.
Canadian dollar trading around parity, $0.9998 to the US currency or US $1.00 at 1:15 CDT (1915 GMT), up from its Wednesday finish at $1.0006 to the US dollar, or 99.94 US cents. NYMEX crude oil futures, linked to canola through use in biofuels, down 1.5 percent at US $89.77 per barrel. US soyabean weekly export sales meet expectations. Brazil No 2 soya state Parana to harvest earlier. Coming up: First notice day is Friday for tendering canola futures contracts for delivery.