Canola climbs $15.40 on week.

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Published: November 5, 2010

Profit taking trimmed early gains but canola futures mostly closed higher Friday.

Over the week, benchmark January canola gained $12.40 per tonne or two percent. It has gained 16.4 percent since Oct. 4.

Wider basis levels are limiting the gains in the cash market.

The Canadian Oilseed Processors Association reported members crushed 122,740 tonnes in the week ending Nov. 3, that was down 6.4 percent from the previous week.

The crush so far this crop year is running 56 percent ahead of a year ago.

Market moving news next will be the U.S. Department of Agriculture crop production report on Tuesday. It is expected to reduce the estimate for corn yields but increase soybean yields. However, strong soybean exports so far this year might caused the USDA to lower its year-end stocks forecast for the oilseed.

In Winnipeg, November canola rose 60 cents per tonne to $546.40 on 30 trades. The contract is in delivery mode.

The January contract rose 20 cents to $551.10 on 6,262 trades.

The November 2011 contract fell $3.40 to $514.80,

The previous day’s best basis widened to $28 per tonne under the November contract in the par region, according to the Winnipeg ICE Futures daily report.

We have changed our 14 day Relative Strength Index calculation to the one used by Reuters and others, which appears to be a more commonly used figure. The November contract RSI was 82. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.

December barley futures rose 10 cents to $180.10 per tonne. March was unchanged at $185.

Chicago new crop November soybeans rose 8.25 cents to $12.735 US per bushel. January rose 9.25 cents to $12.84.

December corn fell 2.25 cents to $5.8775 per bu.

December oats also fell 2.25 cents to $3.7525 per bu. March oats fell 2.25 cents to $3.8775.

In New York, crude oil for December delivery rose 36 cents to $86.85 US per barrel.

The Canadian dollar at noon was 99.85 cents US, up from 99.76 cents the previous trading day. The U.S. dollar at noon was $1.0015.

The TSX composite index rose 46.32 points to close at 12,925.11. The S&P 500 rose 4.78 points to close at 1,225.84.

The TSX closed at the highest point in two years, making gains this week on the U.S. Federal Reserve stimulous plan and on better than expected job growth in October in the U.S.

The TSX rose two percent on the week and the S&P 500 rose 3.6 percent.

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