Good rains in Argentina over the weekend lessened drought problems, but more rain is needed.
The news caused canola futures to fall on Monday. American markets were closed for Martin Luther King day.
Argentina’s farmers began a one-week strike, saying they will not sell soy, corn or wheat, in protest over the government’s restrictions on grain exports.
In Brazil, analysis company AgRural forecast a record soybean crop at 69.65 million tonnes. Excess rain is causing mud slides in some areas of the country, but generally Brazil’s farmers are enjoying good growing weather.
In Winnipeg, March canola fell $1.30 to $591.40 on 1,365 trades.
May fell $1.10 to $599.10
The November 2011 contract fell 70 cents to $549.50.
The previous day’s best basis was $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. There are only two contracts in open interest.
American markets were closed for Martin Luther King day.
In European markets, Brent crude oil fell 0.5 percent because the Trans Alaska Pipeline reopened.
The Organization of Petroleum Exporting countries said there is ample supply of oil and stocks will likely build in the first half of 2011. It said the recent run up in crude prices was due mostly to speculation and an early run of cold weather.
To learn more about how crude supply and prices are affecting diesel prices, see the AgFinance section of the Jan. 20 Western Producer.
The Canadian dollar at noon was $1.014 US, up from $1.0097 the previous trading day. The U.S. dollar at noon was 98.62 cents Cdn.
The Toronto Stock Exchange composite index fell 23.23 points to 13,4440.83.
American stock markets were closed.
