Ideas that Winnipeg canola futures had climbed too high, weaker soy oil prices and the firm Canadian dollar caused canola prices to fall.
The fall was limited by rising Chicago soybeans, lifted by the continuing dockworkers strike in Argentina. Importers have been buying hand to mouth, planning to take advantage of lower priced South American soybeans and soy meal. With that supply interrupted by the strike, however, buyers might have to return to the United States to meet their needs.
Soy oil prices fell on talk that the Chinese government wants to limit cheap soy oil imports because of large supplies and because domestic crushers are losing money due to poor crush margins.
The May canola contract fell $1.80 to $383.50 per tonne on 9,356 trades. A lot of the volume was the result of funds rolling May positions into the July contract.
The previous day’s best basis was steady at -$7.75 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 47.7, according to BarChart.com. The rule of thumb is that an RSI of 30 indicates an oversold market and 70 indicates overbought.
July fell $1.60 to $389.70 on 6,410 trades.
New crop November fell $1.50 to $390 per tonne on 1,800 trades.
The Canadian dollar at noon was 98.15 cents US, up from 98.01 cents at noon the previous trading day. The U.S. dollar at noon was $1.0188 Cdn.
There was no trade in Winnipeg barley again. The May barley contract was steady at $154. July was steady at $145. December was steady at $150.
May soybeans rose 6.5 cents to $9.74 US per bushel. November soybeans rose one cent to $9.265 per bu.
May oats rose 1.5 cents to $2.135 per bu.
Light crude oil for May delivery rose 20 cents to $82.37 per barrel.
