Benchmark November canola futures closed 90 cents higher at $452.20 per tonne. The contract broke through chart resistance at its 100-day moving average and touched a two-week high during the session, but closed below the key technical level.
Recent heavy rain and snow in the Canadian prairies has increased concerns that unharvested canola could be damaged or lost. Cool temperatures were also seen slowing crop maturity and preventing fields from sufficiently drying out for harvesting.
Chicago Board of Trade soyabean futures rallied more than 1% on Tuesday after the US Department of Agriculture estimated pre-harvest supplies below trade expectations and as Chinese importers renewed US soya purchases. November soyabeans settled up 13-1/2 US cents at US$9.09-1/2 a bushel, a two-month peak.
The Canadian dollar did not significantly impact canola futures on Tuesday. The currency hit a one-week low against its US counterpart on Tuesday.