Canola futures edged lower on Tuesday along with soybeans in what was a down day for most commodities.
Canola also was weakened by thoughts that seeding might pick up pace with warmer weather. However there are possibilities of more showers in parts of the Prairies this week.
Soybeans fell on recent weak export demand weigh on soybeans as did falling oil prices.
Oil World raised its forecast of Brazil’s 2011 soybean harvest by 500,000 tonnes, to a record 72.5 million tonnes.
Crude oil fell after India raised interest rates more than expected to control inflation. A slower growing economy would dampen demand for oil. Also, a weekly read of crude stocks in the United States came in higher than expected.
The U.S. dollar gained against the euro as a number of traders began to think the recent run up in commodity prices had gone too far and the decline in the dollar, to a three-year low against the euro had gone too far in the other direction.
Winnipeg (per tonne)
Canola May 11 $562.80, down $3.20
Canola Jul 11 $563.70, down $5.30
Canola Nov 11 $560.50, down $4.70
Canola Jan 12 $568.30, down $3.90
The previous day’s best basis was $15 under the July contract according to ICE Futures Canada in Winnipeg.
The May contract’s 14-day Relative Strength Index was 45. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley May 11 $200, unchanged
Chicago (per bushel)
Soybeans May 11 $13.5925, down 31.0 cents
Soybeans Jul 11 $13.6375, down 29.25
Soybeans Nov 11 $13.5425, down 19.5
Corn May 11 $7.19, down 11.75
Corn Dec 11 $6.6225, up 1.0
Oats May 11 $3.35, up 1.0
Oats Dec 11 $3.62, up 2.0
Minneapolis (per bushel)
Spring Wheat May 11 $9.435, down 6.5 cents
Spring Wheat Jul 11 $9.3225, down 5.25
Spring Wheat Dec 11 $9.445, down 0.5
Light crude oil nearby futures in New York fell $2.47 to $111.05 US per barrel.
The Canadian dollar at noon was $1.0537 US, little changed from $1.0542 the previous trading day. The U.S. dollar at noon was 94.90 cents Cdn.
The weakness in commodities pushed the Toronto Stock Exchange composite index down 242.14 points, or 1.74 percent, at 13,692.37.
The Standard and Poor’s 500 index was down 4.71 points, or 0.35 percent, at 1,356.51.
