Canola and other crop futures rose early Friday but oilseeds closed lower, corn was little changed and spring wheat posted a small gain.
November canola closed at $522.10 per tonne, down $2.40 or 0.46 percent.
Over the week, it fell $15.90 per tonne or about three percent.
Canola was pressured on Friday by a strong rally in the Canadian dollar, which jumped more than one cent.
It rallied when Statistics Canada said the annual core inflation rate jumped more than expected in September to its highest level since December 2008. The core rate rose to 2.2 percent from 1.9 percent in August. Analysts had forecast a 1.9 percent rate.
This means it is unlikely that the Bank of Canada will reduce interest rates.
Early strength came from reviving optimism that Germany and France will agree on a robust program to deal with Europe’s debt crisis. Much uncertainty remains though about the outcome of a weekend meeting of European officials about the debt crisis.
Corn was supported by an export pace that is exceeding USDA’s forecast.
Soybean futures fell about 4.5 percent over the week, erasing part of last week’s nearly 10 percent rise. Soybeans were pressured by a lack of fresh U.S. export business and rain in dry Argentina where soybeans are being seeded. A dry period is coming to Brazil after recent heavy rain, allowing seeding to resume there.
Wheat was supported by a scaling back of forecasts that said there might be showers in the southern plains next week.
The Canadian Oilseed Processors Association said members crushed 115,338 tonnes of canola in the week ending Oct. 19. That was down about seven percent from the week before. So far this year, the crush is running slightly ahead of last year’s pace.
Winnipeg (per tonne)
Canola Nov 11 $522.10, down $2.40 (-0.46%)
Canola Jan 12 $531.00, down $3.00 (-0.56%)
Canola Mar 12 $539.80, down $2.90 (-0.53%)
Canola May 12 $547.10, down $2.30 (-0.42%)
The previous day’s best basis narrowed to $12.73 under the November contract, according to ICE Futures Canada in Winnipeg.
The November contract’s 14-day Relative Strength Index was 40. The rule of thumb is an RSI of 30 indicates an over sold and 70 is over bought.
Western Barley Dec 11 $215 unchanged
Chicago (per bushel)
Soybeans Nov 11 $12.1225, down 12.75 cents (-1.04%)
Soybeans Jan 12 $12.2075, down 9.75 (-0.79%)
Soybeans Mar 12 $12.295, down 8.25 (-0.67%)
Corn Dec 11 $6.4925, down 0.25 (-0.04%)
Corn Mar 12 $6.60, up 0.75 (+0.11%)
Oats Dec 11 $3.37, unchanged
Oats Mar 12 $3.47, unchanged
Minneapolis (per bushel)
Spring Wheat Dec 11 $9.19325, up 1.75 cents (+0.19%)
Spring Wheat Mar 12 $8.55, up 5.25 (+0.62%)
Spring Wheat May 12 $8.35, up 3.5 (+0.42%)
Light crude oil nearby futures in New York rose $1.33 to $87.40 US per barrel.
The Canadian dollar at noon was 99.10 cents US, up from 97.87 cents the previous trading day. The U.S. dollar at noon was $1.0091 Cdn.
In a preliminary tally, the Toronto Stock Exchange composite index rose 119.16 points, or 1.01 percent, to 11,949.49.
The Standard & Poor’s 500 Index was up 22.98 points, or 1.89 percent, at 1,238.37.
For the week, the TSX composite was down 1.1 percent, the Dow was up 1.3 percent, the S&P 500 was up 1.1 percent and the Nasdaq was down 1.1 percent. Quarterly corporate profit reports during the week were generally strong.
