ICE Canadian canola futures shot to 29-month highs on Wednesday after a US government report forecast tighter than expected US soybean stocks. US Department of Agriculture forecast US 2010/11 soybean ending stocks at 140 million bushels, 10 percent below analyst expectations. Cut forecast of Argentina soy production by 3 percent from last month.
New canola contract highs reached for most-active March, May, July and November, bringing in fund buying of 2,000 contracts-trader. Farmer selling seen capping gains. March ended up $10.80 or 1.8 percent at $599.60, on volume of 15,903 contracts. Biggest daily percentage gain for most-active contract in more than a month. March touches $608, highest price in most-active contract since $608.70 on August 1, 2008. May up $11.90 at $607.20, volume 5,899. Deferred months in backwardation as old crop supply concerns greater than worries about spring flooding-trader.