Canadian canola futures surged to the highest level in more than a year on Monday on spillover strength from rallying Chicago soyabean and MATIF rapeseed futures lifted the oilseed by 1.6 percent. Canola futures drew additional support from strong demand from domestic crushers and exporters, as well as slow farmer selling, traders said. Funds bought an estimated net 1,500 contracts on the day, traders said.
Futures advanced despite a stronger Canadian dollar, which would typically hold back gains in canola. Front-month canola touched a 13-1/2 month high on a continuous chart, settling at the highest price since February 10, 2011. May canola rose $9.60, or 1.6 percent, to $608.10 per tonne on volume of 9,516 contracts. After adding 1.7 percent on Friday, the front-month contract's two-day rally was the largest since mid-March 2011.
July canola gained $9.10, or 1.5 percent, to $605.90 per tonne on volume of 5,875 contracts. The May-July spread traded 3,650 times, with May settling at a $2.20 premium to July. The July-November spread settled at a July premium of $41.20, trading 1,798 times.
The benchmark Chicago Board of Trade May soyabean contract gained 13-3/4 cents, or 1 percent, to close at $13.79-1/2 per bushel, the highest in six months, on diminishing forecasts for Brazil's soya crop and on soyabean/corn spreading in a looming battle for US acres. MATIF May rapeseed added 1.1 percent. The Canadian dollar was trading at $0.9910 against the US dollar, or 1.0091 US cents. US light crude oil rose 0.2 percent at $107.10 per barrel.