Most grain futures, including canola, drifted lower on Monday on improving weather in the U.S. Midwest and Europe, and on generally weaker commodities.
Investors fear that the economic recovery is losing steam. Standard & Poor’s cut its ratings of Greece’s debt today, heightening the euro zone debt crisis.
There are also worries that China’s economic growth will slow.
Falling crude oil prices weighed on the grains market.
Moderating the losses in canola was the prevented seeding problem in the eastern Prairies. More rain fell in soggy eastern Saskatchewan and Manitoba over the weekend.
There was welcome light rain in dry areas of western Saskatchewan.
After the market closed, the USDA said U.S corn condition had improved to 69 percent good to excellent, up from 67 percent the week before but down from 77 percent last year at the same time.
The spring wheat condition is 68 percent good to excellent, down from 86 percent last year.
Winnipeg (per tonne)
Canola Jul 11 $589.00, down $1.20
Canola Nov 11 $591.80, down $1.40
Canola Jan 12 $598.40, down $2.20
Canola Mar 12 $604.40, down $2.90
The previous day’s best basis was $14 under the July contract according to ICE Futures Canada in Winnipeg.
The July contract’s 14-day Relative Strength Index was 54. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Jul 11 $205, unchanged
Chicago (per bushel)
Soybeans Jul 11 $13,8275, down 4.5 cents
Soybeans Aug 11 $13,775, down 4.75
Soybeans Nov 11 $13,7675, down 5.0
Corn Jul 11 $7.825, down 4.5
Corn Dec 11 $7.045 down 8.0
Oats Jul 11 $4.01, up 5.5
Oats Dec 11 $4.09, up 1.5
Minneapolis (per bu.)
Spring Wheat Jul 11 $9.8525, down 14.75 cents
Spring Wheat Sep 11 $9.3525, down 13.5
Spring Wheat Dec 11 $9.3425, down 13.75
Light crude oil nearby futures in New York fell $1.99 to $97.30 US per barrel
The Canadian dollar at noon was $1.0226 US, down from $1.0238 the previous trading day. The U.S. dollar at noon was 97.79 cents Cdn.
The Toronto Stock Exchange composite index closed down 144.28 points, or 1.1 percent, at 12,939.72.
The Standard and Poor’s 500 index gained 0.88 points, or 0.07 percent, to 1,271.86.
