Canola futures were mainly stronger on Monday, soaring to new record highs in the old-crop months with speculative positioning a feature. However, the new crop contracts lagged to the upside.
The nearby March canola contract settled at C$800.70/tonne, marking the first settlement above over $800. The more active May contract also posted solid gains on the day, although new-crop November was only up by 50 cents at the close after posting small losses for most of the session.
Tight old crop supplies and the need to ration demand going forward remained the major fundamental supportive factor in canola, according to traders. Gains in Chicago soybeans and soyoil also provided some support, although canola outpaced the US futures to the upside.
The gains in canola along with recent strength in the Canadian dollar has cut into crush margins, which put some pressure on values. Overbought price sentiment also tempered the upside.
March canola was up $27.20 to $800.70, May gained $17.70 to $753.20 and July was $16.90 higher at $720.60. New-crop November added a modest 50 cents to $590.
Source: DePutter Publishing Ltd.
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