Canola gains $14.20 on weather problems

Weather concerns continued to support Winnipeg canola prices Tuesday.Traders continue to try to get a firm grasp on how much canola was seeded. Also, more rain is on the way for much of the Prairies today and the moisture could further damage what has been seeded.Canola was also supported by news that China has agreed to a one-year extension of its limited exemption on its canola import ban associated with blackleg concerns.The exemption allows imports of Canadian canola with blackleg at certain ports away from rapeseed-growing areas.The market was operating on the expectation that an extension would be granted so there was not a strong reaction.Prices were also supported by a lack of farmer selling, partly due to the mud and partly due to the prospect of higher prices ahead.Chicago oats posted more strong gains on worries about reduced seeding in Canada.Chicago soybeans ended down slightly after climbing earlier on support from Winnipeg canola and on a slight downgrade in the condition of the U.S. crop. The U.S. Department of Agriculture rated 73 percent of the crop at good to excellent this week, down from 75 percent the previous week.Rain has stalled the U.S. hard red winter wheat harvest and is reducing the protein level, but wheat prices were little changed Tuesday.July canola rose $14.20 per tonne to $416.20 on 11,467 trades. Traders rolled many July contracts over to November.The previous day’s best basis widened to $1.40 per tonne off the July contract in the par region, according to the Winnipeg ICE Futures daily report.The 14-day Relative Strength Index for July canola was 85, according to BarChart.com. The rule of thumb is that an RSI of 30 indicates an oversold market and 70 indicates overbought.New crop November canola rose $11 to $417.60 per tonne on 19,269 trades.The Canadian dollar at noon was 97.2 cents US, down from 97.53 cents at noon the previous trading day. The U.S. dollar at noon was $1.0288 Cdn.Winnipeg barley July was untraded at $147.50. October rose $5 to $150 on five trades. December was untraded at $150.Chicago July soybeans fell two cents to $9.495 US per bushel; new-crop November fell 0.75 cents to $9.155.July oats rose 27 cents to $2.74 per bu. The limit rose to 30 cents after the contract climbed the 20 cent limit Monday. December oats rose 19 cents to $2.67 per bu. In New York, crude oil for July delivery rose $1.82 to $76.94 per barrel.

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