Canola fell Wednesday, beaten down by the fall in Chicago soybean prices and the limit-down crash in corn prices.
July ICE Canada canola futures fell $6.50 per tonne to $573.20 and November fell $9.30 to $572.80.
The previous day’s best basis narrowed to $0 under the July contract, according to ICE Futures Canada in Winnipeg.
The pressure came from the sell-off in Chicago, with corn falling the 30 cent per bushel limit to $6.77 for July futures and soybeans falling 18.5 cents to $13.30 per bu. Chicago wheat fell 35 cents to $6.38.
Minneapolis spring wheat futures fell 42.25 cents to $8.61 for July and 35 cents to $8.53 for December.
Fund selling was noted in the Chicago markets, driving weakness into a rout, with observers looking keenly to the Thursday open to see if the downward slide would continue.
Improving weather conditions for crops in the United States and decent conditions in Europe and the former Soviet Union have allowed markets to relax about the potential of North American crops, regardless of the situation on the Canadian Prairies.
Anxiety over the retarded development and late seeding of U.S. crops and lingering worries about the ability of the former Soviet Union to export grain this year have recently been alleviated, if not dismissed entirely.
Statistics Canada releases its updated seeding projection tomorrow, which could inspire canola-specific moves.
The sell-off was not universal across the commodity spectrum. Light crude oil in New York rose $1.24 to $95.41 US per barrel.
The Canadian dollar was down slightly in midday trading at $1.02.82.
Winnipeg (per tonne)
Canola Jul 11 $573.20, down $6.50
Canola Nov 11 $572.80, down $9.30
Canola Jan 12 $579.70, down $9.40
Canola Mar 12 $585.80, down $9.60
The July contract’s 14-day Relative Strength Index was 41. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Jul 11 $205, unchanged
Chicago (per bushel)
Soybeans Jul 11 $13.3025, down 18.5 cents
Soybeans Aug 11 $13.31, down 17.75
Soybeans Nov 11 $13.325, down 17.25
Corn Jul 11 $6.775, down 30.0
Corn Dec 11 $6.5025, down 30.0
Oats Jul 11 $3.525, down 1.0
Oats Dec 11 $3.65, down 6.0
Minneapolis (per bushel)
Spring Wheat Jul 11 $8.605, down 42.25 cents
Spring Wheat Sep 11 $8.515, down 33.75
Spring Wheat Dec 11 $8.525, down 35.0
