Canola increases slightly

Your reading list

Canola rose slightly Wednesday in uninspired trading, moving up $3 per tonne for the November Winnipeg futures contract to $558.20.

Gains were stronger in deferred months, with January up $3.30 to $565.90 and March up $5.60 to $573.

Commercial users of the crop were active, as were farmers selling old crop canola to make room for the new crop.

Commercials were said to be buying for both domestic crushing and for exporting seed to Japan.

Speculators closed short positions taken during the rout, adding to the upward pressure.

Trade across the main crop futures of North America was once more light and placid, in marked contrast to last week’s excitement. Light volumes led to price swings on any significant trades, but corn and soybeans were little moved by the end of trading in Chicago, ending up close to where they opened.

Soybeans, the peppiest of the major crops recently, was weakened by renewed fears of Chinese attempts to restrain inflation by controlling commodity prices. China once more announced an interest rate increase to restrain demand.

Wheat dropped five to 10 cents across classes as reports of better than expected quality and yields in the Kansas hard red winter wheat area challenged assumptions about that crop’s situation. As well, good weather forecasts didn’t undermine the notion that a better crop than expected might be produced.

France also appears to be harvesting a better-than-first-feared winter wheat crop.

Oats fell in Chicago, following the lead set by wheat. September oats fell four and a half cents per bushel to $3.43 per bu.

Winnipeg (per tonne)

Canola Jul 11 $573.20, up $3.00

Canola Nov 11 $558.20, up $3.00

Canola Jan 12 $565.90, up $3.30

Canola Mar 12 $573.00, up $5.60

Western Barley Jul 11 $207.00, unchanged

Chicago (per bushel)

Soybeans Jul 11 $13.3100, down 1.25 cents

Soybeans Aug 11 $13.2225, unchanged

Soybeans Nov 11 $13.1850, up 0.50