Canola futures continued their modest rebound last Friday, gaining one percent on the week after a sharp fall the previous week.
The market was supported by a weaker loonie and short covering, where traders who had sold at higher prices buy back the contracts now that the market has fallen. Lack of farmer selling also supported the market.
Canola did better than soybeans, which had another down day as the market reacted to U.S. president Barack Obama proposal’s to restrict banks’ range of operations, which could limit their ability to trade in commodities.
March canola rose $2.40 to close at $385.70 per tonne on 11,001 trades.
May rose $1.80 to close at $392.20 on 2,749 trades.
New crop November closed rose $2 to $404.30 on 543 trades.
The 14-day Relative Strength Index for March canola on Jan. 21 rose to 21. The rule of thumb is an RSI of 30 and lower indicates an over sold market while 70 and higher indicates over bought conditions.
The Bank of Canada at noon Thursday said the Canadian dollar was worth 94.66 cents US, down from 95.36 cents the previous trading day. The U.S. dollar was worth $1.0564 Cdn.
The Winnipeg March barley contract fell 1.20 cents to $148.30 per tonne on 78 trades.
March fell $4.80 over the past two weeks.
May fell 50 cents to $155 on 41 trades.
March soybeans fell 2.5 cents to $9.515 US per bushel.
Chicago wheat and corn also fell, despite strong weekly exports.
Light crude oil in New York for February delivery fell to $74.86 US per barrel, down $1.22.
Despite the loss of the Chinese market, Canadian canola exports continue to be strong.
Statistics from the Canadian Port Clearance Association show ships loading or to arrive in Vancouver by the end of the month taking about 312,000 tonnes, down only about 2,300 tonnes from the same period last year.
The Canadian Oilseed Processors Association said that in the week to Jan. 20, members crushed 80,875 tonnes of canola, up 0.6 percent from the previous week. That represents a capacity use of 77.8 percent.
Last year in the same week, 83,178 tonnes were crushed.
