Renewed worries about debt in Spain and Portugal and tensions over Korean conflict caused investors to seek the safety of the U.S. dollar, causing most commodity prices to fall on Friday.
Canola dropped along with soybeans.
News that China planned to sell 8.5 million tonnes of rice, grain and oilseeds from government stocks next week also pressured soybeans.
The oilseed market noted that showers are in the forecast for dry Argentina next week, but the moisture is not expected to be enough to end drought concerns.
European officials said reports that Portugal was under pressure to seek a bailout were false and Spain ruled out needing help to manage its finances, nevertheless, investors pumped money into the U.S. dollar. The loonie fell about one cent.
The Canadian Oilseed Processors Association said members crushed 125,094 tonnes of canola in the week ending Nov. 24. That was steady with the week before.
Wheat closed higher on worries about continued dry conditions in the U.S. hard red winter wheat region and in China’s winter wheat region.
Also, Russia said it was in negotiations with Ukraine, Kazakhstan and Europe to import a total of three million tonnes of feed grain to fill in for its production shortfall caused by drought last summer.
Argentina said Russia might buy up to three million tonnes of corn from the South American country.
The federal government approved increases to Canadian Wheat Board initial payments effective Dec. 2 The increase will range from $42.45 to $91.30 per tonne for wheat depending on grade and class, $44.40 to $70 per tonne for durum, $60 per tonne for Pool A feed barley and $50 to $52 per tonne for designated barley.
In Winnipeg, the January canola contract fell $10.10 to $529.40 per tonne on 5,922 trades. Over the week, the contract rose 60 cents.
The March contract on Friday fell $9.40 to $535.20 on 3,343 trades.
The November 2011 contract fell $3.60 to $494.40.
The previous day’s best basis was $21.13 under the January contract.
The January contract 14 day Relative Strength Index was 48. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
December barley futures were unchanged at $185 per tonne. March was unchanged at $185.
Chicago January soybeans fell 16.5 cents to $12.385 US per bushel.
December corn fell 0.5 cent to $5.3825 per bu.
December oats fell four cents to $3.4425 per bu.
Minneapolis hard spring wheat rose one cent to $7.34 per bu.
In New York, crude oil for January delivery fell 10 cents to $83.76 US per barrel.
The Canadian dollar at noon was 98.13 cents US, down from 99.18 cents the previous trading day. The U.S. dollar at noon was $1.0813.
The TSX composite index fell 52.95 points to close at 12,892.86. The Standard & Poor’s 500 slipped 8.95 points, or 0.75 percent, to 1,189.40.
For the week, the TSX composite fell 0.5 percent, the Dow dropped one percent, the S&P 500 fell 0.86 percent and the Nasdaq composite gained 0.65 percent.
Mary MacArthur, the Western Producer’s Camrose bureau reporter, is in India gathering stories. See her blog about her travels at www.producer.com.
