Winnipeg canola futures edged higher Tuesday, supported by higher soybean and soy oil prices.
The strong loonie and weaker demand limited gains.
The market is also influenced by talk of increased canola acreage this spring and worries about dryness in the western Prairies.
The market shook off news that Brazilian and Argentine crop forecasters had increased their estimates of the soybean crops in their countries.
Soybeans were supported by short covering and slow farmer selling.
The May canola contract rose 90 cents to $380.80 per tonne on 8,426 trades.
The previous day’s best basis was steady at -$4.75 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 57, according to BarChart.com. The rule of thumb is that an RSI of 30 indicates an oversold market and 70 indicates overbought.
July canola rose $1 to $386.80 on 3,114 trades.
New crop November rose 80 cents to $389.50 per tonne on 3,433 trades.
The Canadian dollar at noon was 99.99 cents US, up from 99.75 cents at noon the previous trading day. The U.S. dollar at noon was $1.0001 Cdn.
The loonie reached parity with the U.S. dollar at points during the day, the first time it had done so since July 2008.
Winnipeg barley again saw no trade. The May contract was steady at $154 per tonne. July was steady at $145. December was steady at $150.
Chicago May soybeans rose 8.5 cents US to $9.445 per bushel. November soybeans rose 9.5 cents to $9.3175 per bu.
May oats rose 2.25 cents to $2.1025 per bu.
Light crude oil for May delivery rose 22 cents to $86.84 per barrel.
