Canola futures fell on Thursday, pressured down by the strong loonie and generally good growing conditions.
The Canadian dollar hit a 3 ½ year high against the U.S. dollar as traders watched nervously discussions by European leaders about ways to bailout debt-mired Greece and negotiations continued in the U.S. about raising the debt ceiling.
The U.S. heat wave that is stressing corn and wheat is expected to moderate this weekend. The question is how much damage has the heat done to corn? It was hot during the day and did not cool at night, keeping the stress on the corn plant.
Corn and wheat were also under pressure on perceptions that high U.S. prices are squeezing off demand. Cheaper wheat exports from the Black Sea region are picking up, providing stiff competition in world markets.
Winnipeg (per tonne)
Canola Nov 11 $560.30, down $7.00
Canola Jan 12 $568.40, down $6.10
Canola Mar 12 $575.60, down $5.30
Canola May 12 $581.10, down $5.60
The previous day’s best basis was one cent under the November contract according to ICE Futures Canada in Winnipeg.
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 Oct 11 $205, unchanged
Chicago (per bushel)
Soybeans Aug 11 $13.8025, up 2.0 cents
Soybeans Sep 11 $13.8125, up 2.25
Soybeans Nov 11 $13.88, up 4.0
Corn Sep 11 $6.7925, down 8.75
Corn Dec 11 $6.73, down 4.75
Oats Sep 11 $3.515, down 2.0
Oats Dec 11 $3.63, down 2.0
Minneapolis (per bushel)
Spring Wheat Sep 11 $8.3375, down 19.0 cents
Spring Wheat Dec 11 $8.3575, down 18.5
Spring Wheat Mar 12 $8.4375, down 19.5
Light crude oil nearby futures in New York rose 73 cents to $99.13 US per barrel.
The Canadian dollar at noon was $1.0581 US, up from $1.0550 the previous trading day. The U.S. dollar at noon was 94.51 cents Cdn.
Indications that European leaders had a plan for Greek debt and upbeat talk about American leaders finding agreement on the debt ceiling lifted stock markets.
The Toronto Stock Exchange composite index unofficial rose 93.47 points, or 0.7 percent, at 13,434.30.
The Standard & Poor’s 500 Index unofficially was up 18.00 points, or 1.36 percent, at 1,343.84.
