A strong rally in soybeans helped lift Winnipeg canola futures, but a jump in the Canadian dollar limited the gain.
Nearby soybean futures rose 2.6 percent but canola gained by just 1.1 percent.
Concerns continue in the United States about the delayed harvest and a forecast for freezing temperatures this weekend in the Midwest that could damage not-yet-mature crop. The weak U.S. dollar also helped lift soybeans.
The market will closely watch Friday’s U.S. Department of Agriculture’s crop production report. Traders expect USDA to increase its forecast of U.S. soybean and corn crops.
November canola settled at $376.80 per tonne, up 4.10 on volume of 6,541 contracts. January closed at $381.80, up $3.80 on a volume of 3,638 contracts.
At noon, one loonie was worth 94.92 cents US, up from 94.17 on Wednesday. The U.S. dollar was at $1.0535, down from $1.0619 Cdn on Wednesday.
The U.S. dollar fell against most currencies because the stock market shifted back to a more optimistic footing on better than expected corporate profit reports, causing investors to shift money from the currency and into higher yielding assets.
Large areas of the Prairies saw rain and snow on Thursday.
With the wet weather this past week, there was little progress in the Saskatchewan harvest. Farmers are worried the moisture could downgrade unharvested crop. About 76 percent of the crop is complete, up from 72 percent the week before. The five-year average is 80 percent harvest.
Western barley closed up 40 cents at $150.40 per tonne and January was 155.90, down 70 cents.
