The volatility in commodities continued Thursday, this time with a strong move to the upside that helped canola futures gain 2.5 percent.
Investor mood improved thanks to positive developments in drafting a financial bailout for debt ridden Ireland. The head of Ireland’s central bank said he expected his country would get many billions of Euros from European Union members and the International Monetary Fund to support its banks.
The news weakened the U.S. dollar, which had gained earlier this week as investors took cover. The weaker greenback and stronger than expected exports of U.S. soybeans lifted Chicago soybean futures.
Wheat and corn also rose. Wheat was supported by stronger than expected weekly U.S. exports and continuing dry conditions in large parts of the U.S. hard red winter wheat area.
Corn exports were near the low end of expectations.
Dry weather is a concern in western Argentina but Brazil is generally satisfactory.
Australia’s Macquarie Bank said in a report that China’s inflation fight would lead to greater food imports, not less.
Commodity prices were shaken early this week when China’s government signaled it intended to reign in galloping inflation, particularly food inflation.
In Winnipeg, the January canola contract rose $13.30 to $538.90 per tonne on 7,815 trades.
The March contract rose $12.80 to $545.10 on 2,508 trades.
The November 2011 contract rose $13.40 to $500.30.
The previous day’s best basis was $27.13 under the January contract.
The January contract RSI was 55. 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 $180.10 per tonne. March was unchanged at $185.
Chicago January soybeans rose 37 cents to $12.42 US per bushel. March rose 37.25 cents to $12.4925.
December corn rose 16 cents to $5.4175 per bu.
December oats rose 8.25 cents to $3.555 per bu. March oats rose 8.25 cents to $3.68.
In New York, crude oil for December delivery rose $1.41 to $81.85 US per barrel.
The Canadian dollar at noon was 98.29 cents US, up from 97.97 cents the previous trading day. The U.S. dollar at noon was $1.0174.
The TSX composite index rose 212.18 points to close at 12,870.01. The S&P 500 rose 18.09 points to close at 1,196.68.
