ICE Canadian canola futures closed higher on Thursday, supported by spillover strength in allied US soyabean futures and fund-driven short-covering, traders said. A slow pace of farmer selling added to bullish sentiment. Rallies were capped by worries about export demand from China, which is embroiled in a diplomatic dispute with Ottawa.
Benchmark May canola rose $2.60 to settle at $458.00 per tonne. July canola ended up $2.50 at $465.80 per tonne. Traders continued rolling short positions forward from the May to the July contract. The May-July canola spread traded 6,696 times between $7.80 and $8.10, premium July.