Crop futures bounced higher on Thursday on thoughts that markets were oversold, but gains were limited by expectations of more than adequate supply.
The gains in crops bucked a general down trend in other commodities as the U.S. dollar jumped higher and crude oil fell five percent.
There were rumours of fresh export business for canola. Canola was also supported by higher soy oil, which was buoyed by new U.S. targets for biofuel use.
Canola basis levels have improved in recent days to about $5.80 under in some places, compared to $15.80 under last week.
March canola rose $5.20 to close at $382.20 per tonne on 7,010 trades.
May rose $5.60 to $388.50 on 4,229 trades. New crop November rose $7.50 to $402 per tonne on 1,712 trades.
The Canadian dollar at noon Thursday was 93.16 cents US, down more than a cent from 94.26 cents at noon the previous trading day. The U.S. dollar at noon was $1.0734 Cdn.
The Winnipeg March barley contract rose $1.50 to $149.50 per tonne with 5 trades. May rose $1.50 to $153.50 on one trade.
March soybeans rose six cents to $9.14 US per bushel. November soybeans were $9.10 per bu.
Light crude oil in New York for March delivery closed at $73.14 US per barrel, down $3.79 cents.
The number of U.S. workers filing initial jobless claims rose more than expected to 480,000 last week. Markets are also worried about the fiscal health of Greece, Portugal and Spain.
This caused investors to leave riskier investments and move back to the U.S. dollar.
Michael Cordonnier, president of Soybean and Corn Advisor, a Chicago-area research firm specializing in South America, told Reuters he could see no factor that would prevent South America from producing a bumper soy harvest.
He estimated that that soybean crop from the giants, Brazil and Argentina, plus smaller players, Paraguay, Bolivia and Uruguay at 128 million tonnes, 13 million more than the previous record set two years ago.
The only threat to production is the wet weather in Brazil that has caused soybean rust problems in some areas, but the peak of the rainy season will soon be over and the problem should lessen.
