Canola jumps higher on demand and rising soybeans

Canola jumped higher Monday on renewed domestic and export buying, slow farmer sales and support from rising soybeans.

Canola also enjoyed technical strength as it topped $600 per tonne again.

May canola settled at $608.10 per tonne, up $9.60. That was the highest front month price since February 2011.

November closed at $564.50, up $5.60.

Soybeans rose as new forecasts put the Brazilian soybean crop at two-to-four million tonnes less than the current USDA forecast.

Rising crude oil and palm oil prices also supported oilseeds.

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• Argentina truckers have reached a settlement in their labour dispute.

• There is lots of position adjusting ahead of the USDA prospective plantings report due on Friday.

• Wheat enjoyed some support from worries about dry weather in Europe and talk that frost damage there was greater than first thought. Drought in Morocco also is supporting wheat and durum.

• There was no trade in ICE western barley, milling wheat or durum contracts, but the exchange arbitrarily raised the price.

Winnipeg (per tonne)
Canola May 12  $608.10, up $9.60  +1.60%
Canola Jul 12  $605.90, up $9.10  +1.52%
Canola Nov 12  $564.50, up $5.60  +1.00%
Canola Jan 13 $568.90, up $5.80  +1.03%

The previous day’s best canola basis was 60 cents over the May contract, according to ICE Futures Canada in Winnipeg.
The 14-day relative strength index was 76.
Western Barley May 12  $229.00, up $5.00  +2.23%
Western Barley Jul 12  $232.00, up $5.00  +2.20%

Milling Wht Oct 12  $262.50, up $2.90  +1.12%
Milling Wht Dec 12  $267.50, up $2.90  +1.10%
Milling Wht Mar 13 $272.50, up $2.90  +1.08%
Durum Wht Oct 12  $275.00, up $5.00  +1.85%
Durum Wht Dec 12  $279.50, up $5.00  +1.82%
Durum Wht Mar 13 $286.10, up $5.00  +1.78%
Barley Oct 12  $185.00, unchanged
Barley Dec 12  $188.50, unchanged
Barley Mar 13 $190.00, unchanged

Chicago (per bushel)
Soybeans May 12  $13.795, up 13.75 cents +1.01%
Soybeans Jul 12  $13.8425, up 12.5  +0.91%
Soybeans Nov 12  $13.295, up 7.0  +0.53%
Corn May 12  $6.3775, down 8.75    -1.35%
Corn Jul 12  $6.36, down 8.54    -1.32%
Corn Dec 12  $5.5325, down 4.25  -0.76%
Oats May 12  $3.3275, down  0.25  -0.08%
Oats Jul 12  $3.27, unchanged
Oats Dec 12  $3.3525, up 2.75  +0.83%

Minneapolis (per bushel)
Spring Wht May 12  $8.22, up 4.75 cents +0.58%
Spring Wht Jul 12  $8.1675, up 5.25  +0.65%
Spring Wht Sep 12  $7.99, up 4.0  +0.50%
Spring Wht Dec 12  $8.0125, up 2.75  +0.34%

The nearby New York light sweet crude contract rose 16 cents to $107.03.

The Canadian dollar at noon was $1.0079 US, up from $1.0018 the previous trading day. The U.S. dollar at noon was 0.9922 Cdn.

Wall Street and Bay Street rallied when U.S. Federal Reserve chairperson Ben Bernanke signaled supportive monetary policy will remain even though the job picture has begun to improve.

The Toronto Stock Exchange’s S&P/TSX closed up 109.13 points, or 0.88 pct, at 12,574.79.

The Dow Jones industrial average jumped 160.90 points, or 1.23 percent, to 13,241.63 at the close. The Standard & Poor’s 500 Index gained 19.40 points, or 1.39 percent, to 1,416.51. The Nasdaq Composite Index climbed 54.65 points, or 1.78 percent, to 3,122.57.