Farmers delay delivery as canola price rises

Lack of farmer selling and production problems in Canada and Europe lifted Winnipeg canola futures Wednesday.There was also fresh talk of exports to China.Prices broke through chart resistance at $460 per tonne, but the price is in oversold territory based on the Relative Strength Index.Crop futures generally were supported by heat in Europe, Russia, eastern Ukraine and western Kazakhstan, which is continuing to shave yields.Bloomberg reported Wednesday that Russia’s agriculture ministry said 17 percent of grain crops had been harvested so far in the country and the average yield was 1.14 tonnes per acre, down nine percent from a year ago. In the Volga federal district where the drought is intense, yields average 0.38 tonnes per acre, down 29 percent from last year.In Winnipeg, November canola rose $1.60 per tonne to $460.80 on 7,933 trades.The January contract rose $2.90 to $463.90 on 1,558 trades.The previous day’s best basis was $5 per tonne under the November contract in the par region, according to the Winnipeg ICE Futures daily report.The 14-day Relative Strength Index for November was 90 according to BarChart.com. The rule of thumb is an RSI of 30 indicates an oversold market and 70 indicates an overbought market.The Canadian dollar at noon was 95.90 cents US, up from 95 cents at noon the previous trading day. The U.S. dollar at noon was $1.0427. The U.S. Federal Reserve chair rattled markets in the afternoon by saying the U.S. economy faces “unusually uncertain” prospects and the central bank was prepared to step in to bolster growth if necessary. He said high unemployment in the United States would keep inflation in check.Winnipeg October barley was steady and untraded at $156.50 and December was $156.50.Chicago August soybeans rose 3.5 cents to $10.1525 US per bushel. September rose 3.75 cents to 9.905. New crop November rose 5.5 cent to $9.785.September oats rose 1.5 cents to $2.575 per bu. December oats rose two cents to $2.655 per bu. In New York, crude oil for August delivery fell $1.02 to $76.56 per barrel.

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