CHICAGO: ICE canola futures rose on Friday for a fourth straight session as firm cash markets lifted the spot November contract and strength in rival US soyoil futures lent additional support, traders said.
Most-active January canola settled up $4.20 at $880.50 per tonne, while front-month November jumped $13.50 to finish at $898.90.
The November-January canola spread exploded higher for a third day, with the November contract stretching its premium over January to $18.40, up from $9.10 a day ago.
The November contract has soared since finishing last week at a discount of $6.80 to the January. Traders attributed the strength in the spread to short-covering and a robust cash market tied to export demand from China and other buyers.
Canola traders shrugged off strength in the Canadian dollar, which tends to make canola less attractive to those holding other currencies. The loonie firmed against its US counterpart as investors weighed prospects of the US Federal Reserve dialling back the pace of interest rate hikes.
Chicago Board of Trade December soyoil futures settled up 1.08 US cents, or 1.5%, at 71.50 US cents per lb on concerns about tight global supplies of vegetable oils. Malaysian palm oil futures inched higher on Friday and ended the week up 7% as the arrival of the monsoon season stoked production worries.
But Euronext February rapeseed futures closed lower on Friday, falling 0.78%.