ICE Canadian canola futures were higher for a fifth straight session on Friday, striking three-month highs on harvest delays after rains and snow and on spillover strength from higher soy prices, traders said.
Benchmark November canola futures scaled to a peak of $462.60 per tonne, the highest since June 25, and settled $1.50 higher at $460.70 per tonne. The contract's 3.3% weekly gain was its first in three weeks and the strongest weekly advance since late May.
Canola drew some support from higher Chicago Board of Trade (CBOT) soy futures, which firmed after the US government released a plan aimed at boosting US biofuels consumption. Both soyaoil and canola oil can be used to produce biofuels.
CBOT November soyabeans ended 4-1/2 US cents higher at US$9.16-1/4 a bushel.
Recent rain and snow in the Canadian prairies kept many farmers from harvesting canola this week and increased concerns that some of the crop may be damaged or may be left unharvested. The harvest delays have sparked active fund short-covering and speculative buying in the futures market at times this week. Dull export demand as Chinese importers continue to shun Canadian canola shipments kept a lid on prices.