ICE canola futures rose on speculative buying triggered by renewed commercial interest on Tuesday, traders said.
Most-traded March canola RSH5 settled up $8 per metric ton at $619.80 (all figures throughout in Canadian dollars).
January canola RSF5 settled up $11.60 at $620, putting it at a slight inverse to March, suggesting strong nearby commercial interest. May canola RSK5 rose $6.70 to $625.40.
Canola’s rise comes as buyers have moved in while farmers have backed off sales. Farmers tend to sell less in the last weeks of December if their fiscal year ends on Dec. 31, and then sell more heavily in early January.
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“The speculative trade, the small and the large speculative traders, are coming in here on the canola,” said trader Jerry Klassen of Resilient Capital. “With a bit of commercial demand and the speculative trade, along with limited farmer selling, it gave the market the room to have a strong close.”
Chicago Board of Trade soyoil futures BOv1 fell 0.89 per cent but stayed within a range holding since Dec. 18, and above 40 cents per pound.
MATIF rapeseed COMc1 rose gently through the daily session before shooting high into the close in thin trading. It rose 1.76 per cent for the day to close at $534.75 but hit $550 in late trading.
Malaysian palm oil futures FCPOc3 rose slightly, continuing the previous day’s reversal of a six-day downturn. POI/
The Canadian dollar stayed weak and under 70 cents in value versus the greenback as political uncertainty swirls around the federal Liberal government.
—Reporting by Ed White
