Winnipeg canola futures climbed higher Monday despite negative demand news and a stronger loonie.
Stronger crude oil and soybean futures lifted the oilseed’s price. The American dollar fell because there are no signs that the United States will be able to start raising interest rates soon.
As of Nov. 15, the Chinese began restricting the import of Canadian canola because of worries about blackleg, a plant disease. That news was already factored into the market.
The market is also aware of the problems Canadian canola crushers are having exporting canola meal to the United States. On Monday, Reuters News Service reported that the U.S. Food and Drug Administration refused 19 shipments from Cargill’s plant in Clavet, Sask., in October because of salmonella content.
November soybeans in Chicago rose 23 cents to close at $10.10 US per bu.
Soybeans were supported by a return to wet weather in southern growing areas. Also, U.S. soybean crush is running stronger than expected.
Crude oil futures jumped 3.3 percent to $78.89 per barrel.
January canola closed at $397.90 Cdn per tonne, up $7.20 from Thursday on a volume of 4,682 contracts.
March rose $7.60 to settle at $403.90 on a volume of 968 contracts.
At noon, the Bank of Canada said the Canadian dollar was worth 95.6 cents US, up from 95.17 on Friday. The U.S. dollar was worth $1.046 Cdn.
Winnipeg January barley under the new contract rose $1.50 to $158 per tonne. March was up 10 cents at $158.
In other news, Japan said it too would begin testing flax shipments from Canada after finding the unapproved, genetically modified variety CDC Triffid in shipments.
Japan has a one percent tolerance level for flax meal used in livestock feed.
As of Dec. 1, Canadian grain handlers will accept only flax that has been tested to determine if it contains CDC Triffid, a GM variety.
The testing protocol was set up to allow resumption of trade with Europe in flax certified free of Triffid.
The Flax Council of Canada and the flax industry have committed themselves to finding markets in Canada and the United States for flax with GM content. Triffid has been approved for use in those countries.
