The slow harvest and forecast for frost this week drove canola futures higher on Tuesday.
Gains were limited by the stronger loonie and the large supply of canola carried into the new crop year.
New gains in Chicago corn futures, which set fresh a 23-month high, helped to lift soybeans slightly higher.
Wheat dipped on a report from the Australian Bureau of Agricultural and Resource Economics that lifted the wheat production forecast to 25.1 million tonnes, up from the previous forecast of 22.14 million tonnes. That is up 16 percent from last year’s crop of 21.66 million.
ABARE forecasts the country will export 18.38 million tonnes of wheat, up from the previous forecast of 14.52 million and last year’s 15.25 million.
The bureau predicts barley production will be nine percent higher and canola 17 percent higher. Canola output is forecast at 2.2 million tonnes and barley at 8.8 million tonnes.
In Winnipeg, November canola rose $1.70 per tonne to $460.60 on 8,786 trades.
The January contract rose $1.50 to $465.10 on 3,024 trades.
The previous day’s best basis widened to $17.13 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 69 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.
The Canadian dollar at noon was 97.83 cents US, up from 97.29 the previous trading day. The U.S. dollar at noon was $1.0222 Cdn.
The TSX composite closed at 12,192.98, up 43.12 points and the S&P 500 closed at 1,121.10, down 17.64 points.
Winnipeg October barley was steady at $170. December was unchanged at $180.
Chicago new crop November soybeans rose one cent to $10.355 US per bushel. January rose 1.25 cents to $10.4525.
December oats rose 11.5 cents to $3.445 per bu. March oats rose eight cents to 3.455.
In New York, crude oil for October delivery fell 39 cents to $76.80 US per barrel.
