ICE canola futures set two-week high as traders cover short positions
All figures in Canadian dollars unless noted
Sept 18 (Reuters) -ICE canola futures rose for a third straight session on Wednesday and the benchmark November contract RSX4 hit a two-week high on bargain buying and fund-driven short-covering, traders said.
Futures extended their recovery from a sell-off earlier this week that had sent the most-active November and January canola contracts to life-of-contract lows.
ICE November canola RSX4 settled up $8.70 on Wednesday at $583.10 per metric ton after reaching $590.40, its highest since Sept. 4.
ICE January canola RSF5 ended up $8.30 at $595.70 a ton after rising to $602.90.
Farmer selling emerged as the January contract RSF5 briefly traded above $600 per ton, traders said.
Strength in allied U.S. soyoil futures BOv1 lent support. Chicago Board of Trade December soyoil BOZ24 settled up 0.43 U.S. cent, or 1.1%, to close at 40.31 U.S. cents per pound.
December Malaysian palm oil FCPOZ24 rose 2.92% on Wednesday and Euronext November rapeseed futures COMX4 climbed 0.59%. POI/
But rallies were capped by worries about ample supplies of old-crop canola and uncertainty about export demand from China, which has launched a one-year anti-dumping investigation into Canadian canola. "Fundamentally, the picture is bleak," one futures trader said.
The Canadian dollar strengthened against its U.S. counterpart as the Federal Reserve cut interest rates by half a percentage point, but the move was limited as investors raised bets the Bank of Canada would step up the pace of its easing. CAD/
Reporting by Julie Ingwersen in Chicago; editing by Jonathan Oatis
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