ICE Canadian canola futures rose on Thursday as investors covered short positions following a sharp market decline on Wednesday, traders said. Good crusher demand also lent support. The January contract gained 1.2%, its biggest daily percentage gain in three months.
January canola settled up $5.60 at $459.10 per tonne, while March futures ended $5.40 higher at $468.20. The January contract rallied through its 10-day and 20-day moving averages. Spreading remained a feature as traders worked to roll January positions into deferred contracts ahead of the year-end holidays, when liquidity tends to erode. A trader said spread trading accounted for about 90% of total volume.
The January-March canola spread traded 9,619 times, closing at a $9.10 March premium. Chicago Board of Trade soyabean rose on fresh hopes for a trade deal with China. CBOT January soyabeans settled up 4-3/4 US cents at US$8.98-1/4 per bushel. Euronext February rapeseed futures rose 0.76% and Malaysian February palm oil futures rose 0.31%.