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WINNIPEG: ICE Canadian canola futures climbed for a third straight session on Tuesday, lifted in sympathy with rising soyaoil prices and on tight supplies.
Canola’s strength in the nearby January contract represents a commercial supply shortage as farmers reduce sales, forcing companies to cover short positions with futures, said Wayne Palmer, senior analyst at Exceed Grain.
Most-active March canola gained $5 to $593.50 per tonne. January-March canola spread traded 6,064 times. Investors have begun rolling January positions forward.
US soyabean futures rallied, supported by a report showing processors were busier than expected during November, adding further pressure to a tight supply base.