A rally in crude oil and equity markets spilled over into the oilseed market Tuesday with March canola rising 1.1 percent.
Intermonth spreading was a major feature with traders rolling out of the March contract into the May contract.
The optimism also lifted Chicago soybeans.
But gains were limited by continuing worries about the coming South American soybean harvest, which promises to be a record breaker.
March canola rose $4 to close at $380.20 per tonne on 8,091 trades.
May rose $3 to $385.50 on 6,094 trades. New crop November rose $1.10 to $397.20 per tonne on 1,185 trades.
The Canadian dollar at noon Tuesday was 94.28 cents US, up from 93.87 cents at noon the previous trading day. The U.S. dollar at noon was $1.0607 Cdn.
The Winnipeg March barley contract was steady at $147 per tonne with 79 trades. May rose 10 cents to $150.10 on one trade.
March soybeans jumped 15.75 cents to $9.255 US per bushel.
Light crude oil in New York for March closed at $77.23 US per barrel, up $2.80 on optimism about the economic recovery and weakness in the U.S. dollar.
Wall Street rose for the second day on good earnings reports from UPS and Emerson Electric.
Bloomberg reported that Chinese buyers may be tempted to default on soybean shipments from the U.S. in favor of cheaper Latin American crops, quoting a report by Emmanuel Jayet, head of agricultural research at Societe Generale SA. Bloomberg said Jayet wrote that this may cause the oilseed to fall “rapidly” below $7 US a bushel.
