Canola prices rose Wednesday, lifted by stronger prices for soybeans and soy oil.
Although the price fluctuates daily, canola has been caught in a narrow trading range of about $10 per tonne for the past three weeks.
The firm Canadian dollar is hurting crushers’ margins and discouraging export business.
Canola acreage is expected to increase this year, but worries remain about dry conditions on the western Prairies.
Rising corn supported soybeans. There were rumours that companies in China are interested in importing American corn because it would be cheaper than domestic corn. However, importers would have to obtain import licenses from the government, and some traders believe that is unlikely, given China’s large government-owned stores of grain.
The May canola contract rose $1.80 to $382.60 per tonne on 9,159 trades.
The previous day’s best basis narrowed to -$3.47 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 53, according to BarChart.com. The rule of thumb is an RSI of 30 indicates an oversold market and 70 indicates overbought.
July canola rose $1.70 to $388.50 on 7,298 trades.
New crop November rose $2.50 to $392 per tonne on 2,315 trades.
The Canadian dollar at noon was 99.7 cents US, down from 99.99 cents at noon the previous trading day. The U.S. dollar at noon was $1.003 Cdn.
Winnipeg barley saw movement for the first time in more than a week. The May contract was steady at $154 per tonne. July rose 50 cents to $145.50 on no trades. December was steady at $150.
Chicago May soybeans rose eight cents US to $9.525 per bushel. November soybeans rose 9.5 cents to $9.4125 per bu.
May oats rose 7.25 cents to $2.175 per bu.
Light crude oil for May delivery fell 96 cents to $85.88 per barrel.
