ICE canola futures hit nearly 13-year high on short-covering

China Reinsurance (Group)

26/01/2021 20:04

(All figures in Canadian dollars unless noted)
    WINNIPEG, Manitoba, Jan 26 (Reuters) - ICE canola futures
jumped on Tuesday to their highest nearby price in nearly 13
years, driven by investors covering short positions and tight
physical stocks.
    
    * Commercials who hold short positions as hedges in the
nearby March contract are waiting for funds to roll their long
positions forward, but some are covering shorts already as the
market soars, a broker said.
    * The price runup will force the market to ration demand
between seed exports and domestic crush, the broker said.
    * Canola's gains also reflect a physical shortage of
Canadian canola and technical strength in the market, said
analyst Wayne Palmer.
    * March canola  RSH1  climbed $17.50 or 2.6% to $693.20 per
tonne.
    * The March contract rose as high as $705.70, the highest
nearby price since February 2008.
    * March-May canola spread traded 6,210 times. 
    * U.S. corn futures surged 4% as news of fresh export sales
to China re-ignited concerns about tightening U.S. and global
grain supplies, and soybeans followed corn higher.  GRA/  
    * Euronext May rapeseed futures  /COMK1  and Malaysian March
palm oil futures  /FCPOH1  edged higher.


 (Reporting by Rod Nickel in Winnipeg, Manitoba)
 ((rod.nickel@tr.com;(1 204 230 6043)(Reuters Messaging:
rod.nickel.tr.com@reuters.net)@RodNickel_Rtrs))