Winnipeg canola nearby futures climbed slightly higher on Tuesday on short covering ahead of he United States Department of Agriculture’s supply and demand report due Wednesday. Nearbys were also supported by talk of new export business earlier this week.
Volume improved, with most trade related to spreads between contract months.
New crop contract months were lower.
Brazil’s agriculture ministry on Tuesday increased its soybean crop forecast to 67.57 million tonnes, up about 900,000 tonnes from its February forecast and up from last year’s 57.17 million tonnes.
March canola futures on Tuesday rose 30 cents to $385.90 per tonne on no trades. The March contract is in delivery mode and there is no open interest.
The most active May contract rose 30 cents to $384.90 on 9,000 trades. The previous day’s best basis narrowed a lot to -11 cents per tonne off the May contract in the par region, according to the Winnipeg ICE Futures daily report.
The 14-day Relative Strength Index for May canola was 41, according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates over bought.
New crop November fell $2.30 to $394.60 per tonne on 2,419 trades.
The Canadian dollar at noon was 97.43 cents US, up from 97.22 cents at noon the previous trading day. The U.S. dollar at noon was $1.0251 Cdn.
The lightly traded Winnipeg March barley contract held steady at $151 per tonne with no trades. May was also steady at $155 on no trades.
May soybeans were steady at $9.475 US per bushel. November soybeans fell 3.5 cents to $9.275 per bu.
March oats settled at 2.18 US per bu.
Light crude oil for April delivery fell 38 cents to $81.49 US per barrel.
