Canola and other grain futures fell as harvest picked up speed in Canada and the United States.Central Alberta received rain today but other areas of the Prairies were enjoying warm dry weather.Statistics Canada will release the results of its latest survey of crop production prospects on Monday.Canola futures were higher most of the day but fell near the close along with soybeans.Although harvest is pressuring prices, there remains strong fundamental support for prices.Reuters reported that canola supply in Europe is tightening. The crop this year was about 20 million tonnes, down one million from 2009. Rain in late summer and early fall is preventing seeding of the 2011 crop. German sowing might be down by eight to 10 percent.Europe has turned to Ukraine in recent years for supply, but it had a disappointing crop.There continue to be problems for Canadian genetically modified canola accessing the European market. The Reuters story said Australia, which expects to harvest a record canola crop this year, should be able to increase exports to Europe. Also, Europe might import more soybeans and palm oil.The U.S. Department of Agriculture said soybean harvest was at 17 percent as of Sunday, ahead of the five-year average of 13 percent.Corn harvest was at 33 percent, behind the five-year average of 38 percent.In Winnipeg, November canola fell $2.10 per tonne to $482.20 on 13,499 trades.The January contract fell $1.60 to $486.80 on 4,193 trades.The previous day’s best basis widened to $19.13 per tonne under the November contract in the par region, according to the Winnipeg ICE Futures daily report.The 14-day Relative Strength Index for November was 72 according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.Winnipeg October barley was steady at $179 per tonne. December was steady at $184.90.Chicago new crop November soybeans fell 18.5 cents to $11.10 US per bushel. January fell 18.5 cents to $11.1975.December oats fell 10 cents to $3.38 per bu. March oats fell nine cents to $3.46.In New York, crude oil for November delivery fell 34 cents to $76.18 US per barrel.The Canadian dollar at noon was 97.03 cents US, down from 97.47 cents the previous trading day. The U.S. dollar at noon was $1.0306 Cdn. The TSX composite closed at 12,278.88, up 88.28 points. The Standard & Poor’s 500 Index rose 5.54 points to 1,147.70.
Canola falls as harvest progresses
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