Old crop canola futures prices fell Monday, but new crop contracts rose.
New crop rose to encourage seeding this spring. Canola must keep up with rising wheat prices, which were supported by worries about damage to the U.S. hard red winter wheat crop and by new import demand from Middle East and North African countries.
Soybeans and corn fell on fund liquidation and improved weather in South America. Commodities in general were weaker on thoughts that recent price gains were overdone.
The U.S. Department of Agriculture will release its monthly supply-demand report on Wednesday.
Traders will watch to see if it increases its U.S. export forecasts and lowers U.S. year end supplies.
They will also watch to see if it lowers its number for Argentine soybean production to account for drought earlier this season.
In Winnipeg, March canola fell $1.50 to $607.90 per tonne on 11,744 trades.
May fell $1 to $616.90 on 8,576 trades.
The new crop November 2011 contract rose $3.20 to $592.80.
The previous day’s best basis was $13 under the March contract according to ICE Futures Canada in Winnipeg.
The March contract 14-day Relative Strength Index was 62. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
March barley futures were steady and untraded at $194. May and July were $205 per tonne.
Chicago March soybeans fell nine cents to $14.245 per bushel.
March corn fell 3.75 cents to $6.7475 per bu.
March oats rose 5.5 cents to $4.21 per bu.
March Minneapolis hard spring wheat rose 2.75 cents to $9.9125 per bu.
In New York, crude oil for March delivery fell $1.55 to $87.48 US per barrel.
The Canadian dollar at noon was $1.0115 US, up from $1.01 the previous trading day. The U.S. dollar at noon was 98.86 cents Cdn.
The Toronto Stock Exchange composite index rose 20.08 points to 13,811.93.
Merger activity drove the Standard & Poor’s 500 Index up 8.18 points to 1,319.05. It breached a technical milepost and there are no technical barriers now until it reaches 1,400.
