Increases in canola futures due to bad spring weather stalled early today, but contracts finished the day up, helped by a late push from Chicago soybeans.
The Canadian Wheat Board this morning estimated the number of unseeded acres in Western Canada at 8.25 million to 12.5 million. The CWB did not specify but a significant amount of that acreage would have been seeded to canola.
The CWB said Saskatchewan’s crop was 64 percent seeded. Earlier this week, Saskatchewan Agriculture put the number at 70 percent.
The news supported American wheat and oats futures.
Corn prices also rose on spillover from Thursday’s report by the U.S. Department of Agriculture, which reduced its forecast of U.S. corn ending stocks for the current crop year and next crop year on the basis of increased demand from ethanol plants.
The stronger corn price also lifted soybean prices.
July canola rose $1.40 per tonne to $395.40 on 8,213 trades.
The July contract rose $19.50 per tonne between the June 4 close and today.
The previous day’s best basis was steady at $2 per tonne off the July contract in the par region, according to the Winnipeg ICE Futures daily report.
The 14-day Relative Strength Index for July canola was 74, according to BarChart.com. The rule of thumb is that an RSI of 30 indicates an oversold market and 70 indicates over ought.
New crop November canola rose $2.50 to $400.50 per tonne on 15,355 trades.
The Canadian dollar at noon was 96.78 cents US, up slightly from 96.74 cents at noon the previous trading day. The U.S. dollar at noon was $1.0333 Cdn.
Winnipeg barley July was again untraded at $147.50. October was steady at $145. December was untraded at $150.
Chicago July soybeans rose 11.25 cents US to $9.4625 per bushel, while new-crop November rose 14.5 cents to $9.0925.
July oats rose 12.5 cents to $2.27 per bu. December oats rose 5.75 cents to $2.28 per bu.
In New York, crude oil for July delivery fell $1.70 to $73.78 per barrel.
The weekly canola crush bounced back from the previous week’s decline, although the total is not yet back above 100,000 tonnes as it was through much of May.
The Canadian Oilseeds Processors Association reported that in the week ending June 9, its members crushed 94,325 tonnes of canola, an increase of almost 20 percent from the previous week.
The week’s crush represented a capacity use rate of 73.4 percent.
