Canola gains as loonie eases and export demand emerges

Canola rose Thursday as the loonie backed down and talk circulated that China was in the market looking to buy.Canola was also supported by a general uptick in crop futures.U.S. soybeans, corn and wheat rose slightly on good weekly exports and expectations that Friday’s U.S. Department of Agriculture production report will cut its forecast of corn yields.With the warm dry weather, harvest is advancing rapidly. Saskatchewan Agriculture today said that 60 percent of the crop was in the bin, up 31 percentage points from the previous week.An additional 30 percent was swathed or ready to straight combine.Canola was most advanced with canola 67 percent complete, followed by barley at 59 percent, spring wheat 51 percent, durum 45 percent, oats 40 percent and flax 18 percent. In Winnipeg, November canola rose $3.50 per tonne to $473.30 on 11,869 trades. The January contract rose $4.20 to $482.60 on 9,494 trades.The previous day’s best basis was $19.13 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 47 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.Winnipeg October barley was steady at $174.50 per tonne. December was steady at $175.50.Chicago new crop November soybeans rose three cents to $10.65 US per bushel. January rose three cents to $10.75.December oats fell two cents to $3.495 per bu. March oats fell 2.5 cents to $3.59.In New York, crude oil for November delivery fell $1.56 to $81.67 US per barrel.The Canadian dollar at noon was 98.37 cents US, down from 99.28 cents the previous trading day. The U.S. dollar at noon was $1.0166.Traders paused after battering down the U.S. dollar for several sessions.The TSX composite index closed at 12,445.93, down 55.79 points. The S&P 500 fell 1.91 points to close at 1,158.06.Tomorrow’s equity and currency trading in Toronto and New York will be influenced by September job reports in Canada and the U.S.

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