Canola edges higher on tight supply and good demand

Canola closed mostly stronger, lifted by soybeans.

The market started off weaker on profit taking, but strengthened during the day, still feeling the lingering support of the strong U.S. export data from last week.

The buying back of previously sold contracts also supported canola, but July closed down a little after big gains last week.

May closed at $649.70, up $2.40.

July closed at $637.70, down $1.10.

November closed at $582.70, up $2.90.

Markets generally were under pressure from bad news out of Europe. Spain sank into recession in the first quarter due to deep government spending cuts to reduce the huge deficit and troubles in the banking sector. Also, a report on U.S. consumer spending was weaker than expected.

Read Also

U.S. livestock: Cattle, hogs end week on high note

Cattle contracts and nearby hog futures ended the week on a high note after a week rife with losses. Most-traded…

• After the close, USDA posted its weekly crop progress report.

The corn crop is 53 percent planted, up from 28 percent last week and ahead of the five-year average of 27 percent. The speed was also faster than what traders expected.

• The spring wheat crop was 74 percent seeded, compared to the five-year average to 32 percent seeded.

As of April 29, 30 percent of that crop had emerged, better than the average of eight percent.

• The U.S. winter wheat crop remains in excellent shape with 64 percent good to excellent, up from 34 percent last year.

Winter wheat is now 54 percent headed, up from the average of 24 percent.

• There was heavy rain in small parts of southern Kansas and northern Oklahoma over the weekend. Amounts totaling 125 to 200 millimetres caused local flooding. Western parts of those states, though, are getting a little dry.

• Worries about drying conditions in southern Russia and Ukraine supported wheat.

Winnipeg (per tonne)

Canola May 12 $649.70, up $2.40 +0.37%

Canola Jul 12 $637.70, down $1.10 -0.17%

Canola Nov 12 $582.70, up $2.90 +0.50%

Canola Jan 13 $586.60, up $2.90 +0.50%

The previous trading day’s best basis in the par region saw a big shift to -$8.00 under the May contract, said ICE Futures Canada.

The 14-day relative strength index was unavailable.

Western Barley May 12 $242.00, unchanged

Western Barley Jul 12 $237.00, unchanged

Milling Wheat Oct 12 $252.00, unchanged

Milling Wheat Dec 12 $257.00, unchanged

Milling Wheat Mar 13 267.00, unchanged

Durum Wheat Oct 12 $277.50, unchanged

Durum Wheat Dec 12 $282.00, unchanged

Durum Wheat Mar 13 288.60, unchanged

Barley Oct 12 $184.50, up $1.50 +0.82%

Barley Dec 12 $187.50, up $0.80 +0.43%

Barley Mar 13 $189.00, up $0.80 +0.43%

Chicago (per bushel)

Soybeans May 12 $15.03, up 6.25 cents +0.42%

Soybeans Jul 12 $15.055, up 12.0 +0.80%

Soybeans Nov 12 $13.81, up 19.0 +1.40%

Corn May 12 $6.6025, up 7.25 +1.11%

Corn Jul 12 $6.3425, up 8.75 +1.40%

Corn Dec 12 $5.4325, up 4.5 +0.84%

Oats May 12 $3.3675, up 1.0 +0.30%

Oats Jul 12 $3.455, up 3.75 +1.10%

Oats Dec 12 $3.52, up 2.5 +0.72%

Minneapolis (per bushel)

Spring Wheat May 12 $7.7825, up 4.25 cents +0.55%

Spring Wheat Jul 12 $7.83-4, up 4.75 +0.61%

Spring Wheat Sep 12 $7.8275, up 4.25 +0.55%

Spring Wheat Dec 12 $7.85, up 4.25 +0.54%

The nearby New York light sweet crude contract fell six cents to $104.87 US.

The Canadian dollar noon rate is $1.0117 US, down from $1.0197 the day before.

The U.S. dollar at noon was 98.84 Cdn.

The Toronto Stock Exchange’s S&P/TSX composite index was up 54.94 points, or 0.45 percent, at 12,292.69, its highest close since April 3. Stronger natural gas prices helped the TSX.

The Dow Jones industrial average was down 33.07 points, or 0.25 percent, at 13,195.24.

The Standard & Poor’s 500 Index dropped 7.29 points, or 0.52 percent, at 1,396.07.

The Nasdaq Composite Index fell 18.68 points, or 0.61 percent, at 3,050.52.