Canola futures rose a little on Monday on the continuing weather problems plaguing the Canadian harvest, wreaking havoc on yields and quality, and on stronger soybean prices.
At one point, the November crop rose as high as $484.50 per tonne, the highest price in a year, but the contract closed lower.
Soybeans rose on the harvest problems in Canadian canola, a frost threat in China’s northern soybean and corn region and dry weather in South America where the next soy crop is about to be seeded.
U.S. corn yields continue to disappoint and AgResource Co., a Chicago research firm, revised down its average corn yield forecast to 157 bushel an acre, Reuters reported. That is well below the current USDA estimate of 162.5 bu. per acre. AgResource president Dan Basse said if that forecast is confirmed, it would likely push corn prices to $6 US per bu. from today’s $5.0825.
In Winnipeg, November canola rose 80 cents per tonne to $477 on 11,480 trades.
The January contract rose 90 cents to $481 on 2,853 trades.
The previous day’s best basis was steady at $12.13 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 68 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.
Winnipeg October barley was steady and untraded at $170 per tonne. December was steady at $182.
Chicago new crop November soybeans rose 15.5 cents to $10.845 US per bushel. January jumped 16.25 cents to $10.945.
December oats rose three cents to $3.59 per bu. March oats rose two cents to $3.61.
In New York, crude oil for October delivery rose $1.20 to $74.86 US per barrel.
The Canadian dollar at noon was 97.27 cents US, up from 96.80 the previous trading day. The U.S. dollar at noon was $1.0281 Cdn.
The TSX composite closed at 12,234.51, up 69.95 points. The Standard & Poor’s 500 Index rose 17.12 points to 1,142.71.
After the market closed the U.S. Department of Agriculture said eight percent of soybeans had been harvested, ahead of the long term average of six percent.
Corn harvest was 18 percent complete, well ahead of the five-year average of 10 percent.
