Canadian canola futures hit five-month high
February 09, 2013
ICE Canadian canola futures soared to a nearly five-month high on Thursday, bolstered by tight Canadian supplies that have driven up basis levels. Farmers seen holding off selling into the cash market, keeping commercial hedge pressure to a minimum. Old-crop March, May and July contracts rose, due to concerns about scant supplies, but deferred months eased with soybeans.
Funds seen boosting their net long position to around 28,000 contracts – trader. Investors adjusting positions ahead of Friday’s US Department of Agriculture crop report. March canola added $9.20 at $647.40 per tonne on volume of 12,314 contracts. Climbed as high as $648.10, the highest price since September 17. May canola gained $3.30 to $627.50 per tonne on volume of 11,852. March-May spread widened to a March premium of $19.90, trading 7,935 times.