Winnipeg canola futures bounced around in a narrow range Tuesday with trade problems with China and hopes for resumption in harvest pulling the market in opposite directions.
The November contract closed up $1 per tonne.
The Canadian dollar rose a little.
The Canola Council of Canada reported Monday that China had rejected Canada’s request for a delay in its requirement for canola exports to be certified blackleg free by Nov. 15.
The type of blackleg in Canada and Australia is more virulent than that found in China, but the seed going to China is bound for crushers and not growers. Canada argued unsuccessfully that loading canola from ship directly to crusher rail cars presented little opportunity for the disease to get into Chinese farmers’ fields.
Environment Canada forecasts a sunny week for the Prairies, raising the hope that fields will dry enough to allow harvest to progress. Drier weather is also forecasted for the U.S. Midwest.
However, moisture is expected to return next week.
On Monday, the U.S. Department of Agriculture said 50 percent of soybeans were harvested, below trade estimates of 55 to 60 percent and the five-year average of 87 percent.
Chicago November soybeans gained 9.25 cents to close at $10.06 US per bushel on tight nearby supplies and worries that the delayed harvest has caused damage and that bad weather next week will cause further delays.
Oil World shaved its forecast of Argentina’s soybean crop to 50 million tonnes from 52 million because of dry weather. However, that is well above last year’s drought reduced crop of 32 million tonnes.
November canola, in delivery mode, gained $1 to close at $403.80 Cdn per tonne with only 69 contracts trading.
January closed at $403.80, up $1.20 cents on a volume of 11,144 contracts.
March climbed $1.90 cents higher to settle at $410.10 on a volume of 713 contracts.
At noon, the Bank of Canada said the Canadian dollar was worth 93.42 cents US, up from 93.08 on Monday. The U.S. dollar was worth $1.0704 Cdn.
Winnipeg barley futures rose 10 cents to close at $168 per tonne. January was up 10 cents to $157.
