The whole crop sector fell a little Tuesday on profit taking, as traders believed the recent rally was over done.
Winnipeg canola futures were undermined by the forecast for drier, sunny weather that will allow harvest to resume in Western Canada.
Also, producer deliveries have picked up at elevator prices hit the desired level in many farmers’ marketing plans. Grain companies responded with more hedge selling.
Other factors influencing grain markets included rain in Russia, which will aid seeding progress. However, Russia’s wheat regions still need rain.
Soybean futures also fell on profit taking after they hit a one-year high on Monday on dryness in South America.
In Winnipeg, November canola fell $3.80 per tonne to $473.20 on 10,401 trades.
The January contract fell $3.50 to $477.50 on 3,972 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 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.
Winnipeg October barley was steady and untraded at $170 per tonne. December was steady at $182.
Chicago new crop November soybeans fell 4.5 cents to $10.80 US per bushel. January fell 4.5 cents to $10.9.
December oats fell 7.5 cents to $3.515 per bu. March oats fell 5.5 cents to $3.555.
In New York, crude oil for October delivery fell $1.34 to $73.52 US per barrel.
The Canadian dollar at noon was 96.95 cents US, down from 97.27 the previous trading day. The U.S. dollar at noon was $1.0315 Cdn.
The TSX composite closed at about 12,199.53, down about 35 points. The Standard & Poor’s 500 Index rose about two points to 1,144.78.
The United States Federal Reserve, which met today, left interest rates unchanged but said it would use all policy tools if needed to fire up the moribund U.S. economy.
