ICE canola rallies to 5-1/2 month

WINNIPEG: ICE Canada canola futures rallied to a 5-1/2 month high as a round of buying hit the market late on Monday, ex
27 Feb, 2012

* Strong demand on the export market and low soil moisture in key growing areas of the Canadian prairie supported prices, traders said.

* The dry soil conditions overcame pressure from forecasts for record plantings this spring.

* Canadian farmers will plant a record-large 19.4 million acres of canola this year, taking advantage of attractive prices and dry conditions, according to a forecast from FarmLink Marketing Solutions.

* March canola settled $5.60 higher at $573.30 per tonne, just below its intraday high of $573.80. Monday's peak was the highest price for canola on a continuous basis since reaching $576.60 on September 12.

* Most-active May ended $4.20 higher at $568.40 a tonne on volume of 12,721 contracts.

* Traded volume came in slightly below 25,000 contracts following a week of active trading.

* The March/May spread traded 5,413 times, settling at $5 over (premium March).

* CBOT soybeans settled higher for the sixth session in a row on expectations of continued Chinese demand for US supplies.

* As of 1:55 p.m. CST (1955 GMT), the Canadian dollar was trading at $0.9989 against the US dollar or US$1.0011, off slightly from Friday's North American session close at $0.9997, or US$1.0003.

* US light crude oil rose nearly 2 percent to settle at US$109.77 per barrel.

Copyright Reuters, 2012

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