Canola fell on Friday, weighed down by farmer deliveries, lack of new bullish news and ideas that yields might be higher than initially thought.Soybeans slipped despite strong weekly exports. Markets focused more on weaker crude oil prices and the firmer U.S. dollar.Agriculture Canada has added its demand forecasts to Statistics Canada’s production figures released earlier this month.StatsCan forecast a 10.43 million tonne crop and 2.12 million tonne carry in for total supply of 12.8 million tonnes.Agriculture Canada forecasts exports will fall to six million tonnes from 7.13 million last year and domestic demand will climb to 5.8 million tonnes from 4.957 million last year.That puts total use at 11.8 million tonnes, leaving one million tonnes at a tight carryout at the end of the crop year.The Canadian Oilseed Processors Association reported members crushed 123,953 tonnes in the week ending Oct. 13, up almost nine percent from the previous week.Hopes for a record canola crop in Australia have been dashed by drought in Western Australia and too much rain in eastern states.The Australian Oilseeds Federation cut its forecast by 8.2 percent or 185,000 tonnes to 2.065 million tonnes.The reductions were mainly due to cuts to the federation’s forecast for harvested acreage.Last year, Australia grew 1.897 million tonnes of canola.Crop watchers are worried the La Nina, which tends to deliver wet conditions to Australia, will lead to rain at harvest, downgrading grain quality.The United States is harvesting a great canola crop at 1.149 million tonnes, up from 668,6500 tonnes last year. In Winnipeg, November canola fell 60 cents per tonne to $498.40 on 13,385 trades. For the week, the contract rose $8.60.The January contract on Friday fell 50 cents to $506.90 on 16,884 trades.The previous day’s best basis was $20 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 60 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.December barley futures were unchanged at $180. March was unchanged at $185.Chicago new crop November soybeans fell 3.5 cents to $11.85 US per bushel. January fell 3.25 cents to $11.9575.December oats fell 5.75 cents to $3.7025 per bu. March oats fell 5.75 cents to $3.8025.In New York, crude oil for November delivery fell $1.44 to $81.25 US per barrel.The Canadian dollar at noon was 98.93 cents US, down from 99.64 cents the previous trading day. The U.S. dollar at noon was $1.0108.The TSX composite index closed at 12,609.07, down 10.62 points. The S&P 500 rose 2.38 points to close at 1,176.18.
Canola gains $8.60 on week
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