An improved weather outlook for Argentina and lower crude oil prices pressured oilseed prices lower on Monday.
Showers were forecast for Argentina’s soybean areas Tuesday and Wednesday.
Crude dropped after Saudi Arabia’s oil minister said the Organization of Petroleum Producing Countries might increase production to match rising demand.
Canola was stronger earlier in the day on strong commercial demand that might be related to new export business.
Wheat jumped higher again on tight supplies of quality grain and weather threats to the hard red winter wheat crops in the United States and China. See the Markets section of the Jan. 27 Western Producer for more on China’s drought.
Frost has damaged pulse crops in India. Media reports from India have varying assessments of the damage, from severe to almost nothing. If the damage is bad, it would alter the demand outlook for Canadian pulses. Until now, expectations for a bumper Indian crop have weighed down Canadian pulse prices. Details about this developing story are in the Jan. 27 Western Producer.
In Winnipeg on Monday, March canola fell $2.40 to $599.70 on 10,548 trades.
May fell $2.60 to $607.20.
The November 2011 contract was steady at $566.60. and other 2011 conracts rose.
The previous day’s best basis widened to $31 under the March contract according to ICE Futures Canada in Winnipeg.
The March contract 14-day Relative Strength Index was 61. 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 was steady at $200 per tonne.
Chicago March soybeans fell 7.75 cents to $14.045 per bushel.
March corn fell two cents to $6.5525 per bu.
March oats rose one cent to $3.87 per bu.
March Minneapolis hard spring wheat rose 13 cents to $9.5025 per bu.
In New York, crude oil for February delivery fell $1.24 to $87.87 US per barrel.
The Canadian dollar at noon was $1.0066 US, up from 1.0055 cents the previous trading day. The U.S. dollar at noon was 99.34 cents Cdn.
The Toronto Stock Exchange composite index rose 79.62 points at 13,338.19.
Standard & Poor’s 500 Index rose 6.81 points at 1,290.16.
