Canola futures fell sharply on Thursday as commodity funds liquidated long positions.
Crop futures generally were lower. The heaviest fund selling of the year also pushed corn, soybeans and wheat down sharply.
Some analysts said funds were looking for reason to take profits after recent gains.
Funds took their cue from forecasts that show drier weather is coming for the U.S. Midwest, allowing seeding pace to pick up.
Also, some areas of the southern plains wheat belt have received rain, limiting losses from drought.
However, a consortium of consortium of U.S. climate experts said Texas was suffering the worst drought since 1968 and producers were giving up on as much as 70 percent of the state’s wheat acreage.
China’s wheat area has become dry again, but showers were forecast for the southern part of its wheat belt.
Winnipeg (per tonne)
Canola May 11 $552.30, down $15.50
Canola Jul 11 $561.80, down $15.40
Canola Nov 11 $559.10, down $16.50
Canola Jan 12 $566.20, down $17.20
The previous day’s best basis widened to 60 cents under the May contract according to ICE Futures Canada in Winnipeg.
The May contract’s 14-day Relative Strength Index was 36. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley May 11 $200 unchanged
Chicago (per bushel)
Soybeans May 11 $13.5025, down 27.75 cents
Soybeans Jul 11 $13.535, down 31.0
Soybeans Nov 11 $13.3775, down 30.75
Corn May 11 $7.23, down 29.25
Corn Dec 11 $6.375, down 29.75
Oats May 11 $3.39, down 30.75
Oats Dec 11 $3.625, down 30.0
Minneapolis (per bushel)
Spring Wheat May 11 $9.1675, down 30.75 cents
Spring Wheat Jul 11 $9.2375, down 30.5
Spring Wheat Dec 11 $9.28, down 30.75
Light crude oil nearby futures in New York rose 10 cents to $112.86 US per barrel.
The Canadian dollar at noon was $1.0514 US, up from $1.0472 the previous trading day. The U.S. dollar at noon was 95.11 cents Cdn.
The Toronto Stock Exchange composite index ended up 1.83 points at 13,894.40.
Growth in U.S. gross domestic product slowed to a 1.8 percent annual rate after a 3.1 percent fourth-quarter pace, the commerce department said. Economists had expected a two percent pace.
The Standard and Poor’s 500 index was down 0.65 of a point, or 0.05 percent, at 1,355.01.
