Canola futures closed stronger on Tuesday, testing contract highs as the market reacted to updated supply/demand data from the USDA.
The USDA's monthly report was bullish for soybeans, with average yields revised down from earlier estimates. The resulting rally in soybeans and soyoil provided spillover support for canola. Canola was already turning higher ahead of the report, with tight supplies and bullish technical signals underpinning the Canadian oilseed independently.
However, ideas that canola is looking overpriced at current levels did temper the advances somewhat with profit-taking likely coming forward at the highs.
January canola gained $12 to $989.40, March climbed $9.60 to $964.20 and May was up $8.60 at $934.10.
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