Canola futures closed the week higher on tight stocks and steady demand from export and domestic buyers.
The spread between new crop and old crop prices narrowed over the week, indicating the market’s concern over the potential for wet seeding conditions this spring.
Statistics Canada’s Dec. 31 stocks report released this morning pegged wheat and canola stocks a little lower than expected and barley stocks a little higher, although still the lowest in many years.
Canola stocks were pegged at 8.24 million tonnes, down 9.9 percent from last year.
The Canadian Oilseed Processors Association said members crushed 118,393 tonnes of canola in the week ending Feb. 2, up about four percent from the week before. Crushers have processed more than a million tonnes more that at the same time last year.
Corn rose on speculation that China will soon be back in the market. Also, with sugar prices hitting 30 year highs, expectation is that more corn will be used to make corn syrup.
Soybeans slipped on steadily improving crop conditions in Argentina, thanks to increased rainfall.
Wheat dipped, but concerns remain about potential freeze damage to the hard red wheat crop in western Kansas.
Egyptians demonstrated against their president again, but there was less violence today. Egypt’s government grain buyer today tendered for more than 100,000 tonnes of hard and soft wheat.
In Winnipeg, March canola rose $1.90 to $609.40 per tonne on 8,125 trades. On the week, the contract gained $11.80 per tonne.
May rose $1.90 to $617.90 on 5,907 trades.
The new crop November 2011 contract rose $8 to $589.60. On the week the contract jumped $22.10, narrowing the spread between old and new crop.
The previous day’s best basis was $13 under the March contract according to ICE Futures Canada in Winnipeg.
The March contract 14-day Relative Strength Index was 64. 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 and untraded at $194. May and July rose $5 to $205 per tonne on no trade.
Chicago March soybeans fell 2 cents to $14.335 per bushel.
March corn rose 16 cents to $6.785 per bu.
March oats fell 0.25 cents to $4.155 per bu.
March Minneapolis hard spring wheat fell 10 cents to $9.885 per bu.
In New York, crude oil for March delivery fell $1.51 to $89.03 US per barrel.
The Canadian dollar at noon was $1.01 US, unchanged from the previous trading day. The U.S. dollar at noon was 99.01 cents Cdn.
The Toronto Stock Exchange composite index fell 49.50 points to 13,791.85.
Canada added 69,200 jobs in January, more than expected, pushing the unemployment rate down to 7.6 percent from 7.8 percent in December. U.S. employment rose by only 36,000 jobs in January, but the unemployment rate fell to nine percent from 9.4 percent in December.
The Standard & Poor’s 500 Index rose 1.12 points to 1,308.22.
For the week, the TSX composite rose 2.6 percent, the Dow gained nearly 2.3 percent, the S&P 500 rose 2.7 percent and the Nasdaq climbed about three percent.
