ICE canola futures rise on short-covering, dry Canadian crops

WINNIPEG: ICE canola futures rose on Tuesday, supported by short-covering and concerns about dry Western Canada conditions.

* Funds are reducing their large short position in the July contract before it expires next month, pushing the price higher, a trader said. The new-crop November contract, which was most active, climbed as recent rains were insufficient for Western Canadian crops, the trader said.

* July canola gained $1.10 to $455.50 per tonne.

* November canola added $1.40 to $465.60 per tonne.

* July-November canola spread traded 10,825 times.

* Chicago July soybeans settled slightly higher.

* Paris Matif August rapeseed futures dipped and Malaysian August palm oil futures rose.

* The Canadian dollar strengthened slightly against its US counterpart on Tuesday, holding near its highest level in more than three months, as global stocks and oil prices climbed.

* The US government on Tuesday slashed its estimate of domestic corn production this year as heavy rain in key growing areas throughout the spring forced growers to cut their acreage and caused planting delays.