Canola futures closed a little higher Friday despite the large supply, weaker soybeans, a strong loonie and export problems.
Supporting the market was a lack of farmer selling and a recovery in the canola crush.
January canola settled Friday at $412.70 per tonne, up 30 cents from Thursday on a volume of 9,782 contracts.
March rose 40 cents to close at $419.40 per tonne on a volume of 4,650 contracts.
The Bank of Canada at noon Friday said the Canadian dollar was worth 95.08 cents US, up from 94.86 cents Thursday. The U.S. dollar was worth $1.0517 Cdn.
The Winnipeg January barley contract was up 20 cents at $162 per tonne with 236 trades. March fell $3.30 to $160 per tonne with 45 trades.
Prime minister Stephen Harper, who is visiting China this week, mentioned the canola issue in a speech. The Chinese issued a statement restating that the restrictions are not a trade barrier but are designed to protect Chinese rapeseed from disease.
Reuters News Service reported that many in the trade believe a ship in Vancouver scheduled to take more than 60,000 tonnes of canola is destined for China. Traders said only China takes such large shipments. Viterra is the exporter but would not comment.
It would be the first shipment to China since Nov. 15 when restrictions were imposed related to blackleg.
Reuters reported speculation that Viterra might have a backup destination if China’s restrictions are not lifted.
Strong exports are needed after Statistics Canada on Thursday put the canola crop at 11.8 million tonnes, about one million more than expected.
There was good news from the Canadian Oilseed Crushers Association (COPA), which reported Friday that members processed 83,904 tonnes in the week ending Dec. 2, up almost three percent from the week before.
It was the second week with more than 80,000 tonnes crushed. COPA said the crush capacity use rose to 80.7 percent compared to the year to date figure of 74.2 percent.
That is still below last year’s 93.5 percent.
Stronger than expected job statistics in Canada and the United States lifted the two country’s currencies against other trading partners.
The Canadian economy added 79,100 jobs after shedding 43,200 in October, Statistics Canada said. Canada’s unemployment rate fell to 8.5 percent from 8.6 percent in October. The U.S. rate fell to 10 percent from 10.2 percent.
