Weather worries push prices higher

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Published: October 21, 2009

Nearby Winnipeg canola futures closed just shy of $400 per tonne and Chicago soybeans closed at more than $10 US per bushel on Wednesday.

Barley and corn futures also rose.

Worries about the rain-delayed harvest in Canada and the United States and stronger crude oil prices helped support crop prices.

Canola climbed despite the stronger Canadian dollar. The U.S. dollar fell against other currencies because analysts think the Federal Reserve will keep interest rates low to bolster the still struggling U.S. economy, but other countries will start to tighten their money supply.

As the November contract approaches its expiry, the January contract is seeing more trade.

November canola rose $3.20 Cdn to close at $399.70 a tonne on a volume of 9,090 contracts.

January gained $3 to settle at $406 on a volume of 16,818 lots.

The Canadian dollar rallied to 96.04 cents US at noon on Wednesday, up from 95.24 cents on Tuesday.

The U.S. dollar was $1.0412 Cdn compared to $1.05 on Tuesday.

The euro climbed past the psychologically important $1.50 US level, the highest in 12 months.

November barley rose $5.50 to $159.50 per tonne thanks largely to the rally in corn. January barley rose $4.60 to $160.60.

Crude oil in New York jumped almost three percent to close at more than $81 US per barrel on a report that showed U.S. gasoline stocks fell more than expected.

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