Crusher buying helped nearby canola futures post slight gains Monday despite a lower soybean market.
Farmers have slowed canola sales, hoping prices will rise further.
Dryness in Argentina and southern Brazil are supporting oilseed prices, as is a heavy monsoon season in Malaysia, the world’s largest palm oil producer.
Wheat prices were supported by continued rain in Australia that is flooding fields and lowering quality. Also, dryness in China’s winter wheat area lent support.
Canola’s gains were limited by losses in soybeans, which were pressured by profit taking and weaker corn prices.
Corn was pressured by thoughts that U.S. corn will face competition from Australian feed wheat in world markets.
The Canadian Wheat Board has applied to the federal government for another increase to initial payments.
If approved, the recommendation would increase payments by a range of $33 to $54 per tonne on the base grades of wheat, durum, feed barley and malting barley. The federal government usually takes six to eight weeks to approve such increases.
In Winnipeg, the January canola contract rose 20 cents to $553.50 per tonne on 8,930 trades.
The March contract rose 90 cents to $560.40 on 6,856 trades.
The November 2011 contract fell $3.20 to $513.80.
The previous day’s best basis was $16.13 under the nearby contract.
The January contract 14-day Relative Strength Index was 61. 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 steady at $188 per tonne. March was steady at $194. New crop 2011 contracts were bid $5 higher.
Chicago January soybeans fell 11.75 cents to $12.885 US per bushel.
December corn fell 5.25 cents to $5.5275 per bu.
December oats rose five cents to $3.72 per bu.
Minneapolis hard spring wheat rose 16.75 cents to $8.34 per bu.
In New York, crude oil for January delivery rose 19 cents to $89.38 US per barrel.
The Canadian dollar at noon was 99.42 cents US, little changed from 99.40 cents the previous trading day. The U.S. dollar at noon was $1.0058.
The TSX composite index rose 97.06 points to close at 13,279.01. The Standard & Poor’s 500 fell 1.59 points to 1,223.12.
