Canola futures prices rose Sept. 24 as the Canadian dollar fell more than one cent and word circulated about export business from China.
Environment Canada’s forecast for widespread frost in Alberta and western Saskatchewan on the morning of Sept. 28 also added support.
November canola closed at $386.40 Cdn per tonne, up $5.40 or 1.4 percent from the day before.
November traded in a wide range of $12.80.
January closed at $391.40, up $5.10.
The American dollar rose against the loonie and other currencies as the stock market declined on rising worries, fueled by weak U.S. monthly house sales, that the U.S. economy is still struggling.
The loonie was also weakened by falling oil prices that dropped below $66 US per barrel in New York on data showing an unexpected buildup of crude oil inventory.
At noon, the Bank of Canada said the loonie traded at 92 cents compared to 93.25 cents the day before.
Canola had been steadily weaker since the start of the month as the frost threat in Canada and the U.S. Midwest soybean region eased thanks to an unusually warm September and indications of better than expected crops.
Early in the session, November canola hit a contract low sparking the business with China.
Canola rose independently of the soybean complex, which was generally lower on forecasts of good weather. Cooler, wet weather is expected early next week in the Midwest, but the frost is not expected to reach that far south.
Saskatchewan Agriculture reported that canola harvest in the province is 34 percent complete, down from the five-year average of 52 percent. About 56 percent of canola has been swathed.
Overall, the harvest is 50 percent complete, versus the average of 58 percent.
