Canadian canola futures mostly rise

December 29, 2012

ICE Canada canola futures climbed
ICE Canada canola futures climbed

ICE Canadian canola futures mostly rose on Thursday after a two-day break for the holidays, lifted by short-covering, traders said. ICE Futures Canada was closed for holidays on Tuesday and Wednesday, one day longer than US markets. Inter-month spreading was a key feature, with commercials rolling January positions forward.

January-March spread widened to a January premium of $5.70, trading 11,500 times Nearby canola was on pace for a yearly gain of about 12 percent, despite tracking losses in the current quarter and month. Canola resisted spillover pressure from lower Chicago soybean and grain futures, which weakened due to worries about the US fiscal cliff. Late in the session, however, news broke that the US House of Representatives will hold a work session on Sunday, which caused Chicago grain and soy futures to pare losses.

January canola gained 90 cents to $591.30 on volume of 12,042 contracts. Chicago Board of Trade January soybeans lost 5-3/4 US cents to US $14.18-3/4 per bushel. Paris February rapeseed fell 1.7 percent. Malaysian February palm oil rose 1.9 percent, hitting a five-week high on expectations for stronger demand and as floods sparked concerns of supply disruptions. Canadian dollar was trading at $0.9945 against the US dollar or US $1.0055 at 1:57 pm CST (1957 GMT), down from Monday’s close before the holidays at $0.9913 versus the US dollar, or US $1.0088.

Courtesy: Reuters

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