Continuing concerns about frost and the slow pace of harvest pressured canola futures higher Wednesday.Killing frost hit the Peace River region overnight, while large parts of the Prairies will be hit by killing frosts Friday and Saturday, according to Environment Canada.Alberta Agriculture reported that only eight percent of crops had been harvested as of Sept. 9, compared to the normal rate of 35 percent. Only about four percent of canola was in the bin.The Australian Bureau of Agricultural and Resource Economics yesterday forecast that canola production would reach a record 2.2 million tonnes this year, 17 percent more than last season, largely reflecting a significant increase in planted area and expected higher yields, particularly in southern New South Wales.Australia is also expecting much better wheat and barley crops.The good production news also extends to pulses. ABARE forecasts a field pea crop of 369,000 tonnes, up from 356,000 last year. Chickpeas were pegged at 792,000 tonnes compared to 445,000, fababeans at 256,000 tonnes, up from 217,000, and lentils 230,000 tonnes, up from 143,000.U.S. corn futures continued to rise on reports of disappointing yields. Analysts’ believe that the national average yield might wind up lower than what the U.S. Department of Agriculture has forecast.Wheat futures edged lower on profit taking despite the support from the slow Canadian harvest, Ukraine’s reduction of its crop estimate and continuing drought in Russia, which is impeding winter crop seeding.In Winnipeg, November canola rose $2 per tonne to $462.60 on 7,405 trades.The January contract rose $2 to $467.10 on 2,345 trades.The previous day’s best basis narrowed to $15.31 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 63 according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.The Canadian dollar at noon was 97.26 cents US, down from 97.83 the previous trading day. The U.S. dollar at noon was $1.0282 Cdn.The TSX composite closed at 12,144.84, down 48.14 points, while the Standard & Poor’s 500 Index gained 3.99 points to 1,125.09. Winnipeg October barley was steady and untraded at $170 per tonne. December was unchanged at $180.Chicago new crop November soybeans rose seven cent to $10.425 US per bushel. January rose 7.5 cents to $10.5575.December oats fell 4.5 cents to $3.40 per bu. March oats fell 0.5 cents to 3.45.In New York, crude oil for October delivery fell 78 cents to $76.02 per barrel.
Frost strikes canola
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