Canola futures closed higher for the fourth straight day on Friday, with the July contract closing over the $700/tonne mark.
As can be seen on the futures chart below, the July contract is now trading at its highest since last May, as the market continues to be propped up by the tightening old-crop supply. Although lower today, advances in Chicago soybean oil – buoyed by ideas of a new biodiesel policy from the EPA as soon as next week – have also boosted canola.
Based on today’s closing prices, the July contract’s premium to new-crop November is now more than $40/tonne.
May canola gained $4.90 to $697.30, July was up $4.40 at $701.80, and November was $3.30 higher at $660.40.
