ICE canola futures post biggest gain in 4 months on short-covering
WINNIPEG, Manitoba, Nov 20 (Reuters) - ICE canola futures settled up nearly 3% on Monday, registering their biggest daily percentage gain in four months, boosted by short-covering and spillover support from soy markets.
Funds, which follow technical indicators, covered some of their net short positions as U.S. markets climbed due to unfavorably hot weather in Brazil's soybean-growing areas, traders said.
January canola RSF4 gained $19.50, or 2.8%, to settle at $716.70 per metric ton.
The January contract hit resistance at its 50-day moving average.
January-March canola spread, the most active inter-month spread, traded 8,356 times.
Non-commercial traders held a net short position of about 98,000 contracts as of Nov. 14, according to the U.S.
Commodity Futures Trading Commission.
Chicago Board of Trade soybean futures Sv1 rose, supported by the results of Sunday's presidential election in Argentina coupled with brutally hot weather in Brazil.
Euronext February rapeseed futures /COMG4 dipped.
*All figures in Canadian dollars unless noted