Canola futures fell on Thursday on long liquidation, profit taking and position evening ahead of the shortened trading session on Friday, the last trading day of the year.
Canola futures have gained about 40 percent on the year.
Trade Thursday was light.
Crusher buying maintained a floor under the market.
Chicago soybeans, wheat and corn also fell on year end profit taking.
Wheat was also pressured by weak weekly U.S. exports and a report by the Buenos Aires Grain Exchange that raised its estimate of the Argentine wheat harvest to 14.5 million tonnes, up from 13.5 million in its last estimate. So far, farmers there have harvested about 62 percent of their wheat acres.
It did not change its estimates for the corn and soybean plantings, which are suffering from dry and hot weather. Farmers are still seeding soy and corn.
We are taking the day off Friday, but you can follow futures prices in the shortened trading day on our regular website at www.producer.com and on our mobile site at www.producermobile.com.
Read the Jan. 6 Western Producer for stories on the grain market outlook for 2011 and the spring weather outlook.
In Winnipeg, the January canola contract fell $2.70 to $574.60 per tonne on 1,886 trades.
The March contract fell $2.10 to $583.80 on 4,227 trades.
The November 2011 contract fell $1.40 to $588.50.
The previous day’s best basis was $23.40 under the nearby contract.
The January contract 14-day Relative Strength Index was 63.
The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
March barley futures were steady at $194.
Chicago January soybeans were steady at $13.66 US per bushel. March was up one cent at $13.76.
March corn fell eight cents to $6.16 per bu.
Corn futures are up 49 percent for the year, the biggest gain since 2006.
March oats rose 3.25 cents to $3.8775 per bu.
March Minneapolis hard spring wheat fell 11.25 cents to $8.72 per bu.
In New York, crude oil for February delivery fell $1.28 cents to $89.84 US per barrel.
The Canadian dollar at noon was 99.91 cents US, down from 99.97 cents the previous trading day. The U.S. dollar at noon was $1.0009 Cdn.
Reports released on Thursday showed continued improvement in the U.S. economy.
New applications for U.S. unemployment benefits dropped 34,000 last week to 388,000, the lowest level since July 2008. Also factory output in the Midwest expanded in December at its fastest pace in more than 22 years.
However, investors pressured stocks lower as they took profits after a hot equities rally in December.
The TSX composite index fell 14.76 points, or 0.11 percent, to 13,434.41. The Standard & Poor’s 500 fell 2.34 points, or 0.19 percent, to 1,257.44.
The S&P 500 is on course to close out its best December since 1991 when the index rose 11.2 percent.
