Canola futures edged higher on Friday, capping a week where the November contract gained $17.60 per tonne.Crusher buying and only light hedge pressure continued to be the main features. Month end profit taking, a slightly stronger loonie and weaker crude oil limited gains.Chicago markets were little changed on the day.There was little new news to trade on. The next potential market moving factor will be the U.S. Federal Reserve meeting Nov. 2-3, which could influence exchange rates. The next U.S. Department of Agriculture report is due Nov. 9, which some analysts believe will again cut expected corn yields.It was another strong week for canola crush.The Canadian Oilseed Processors Association said members crushed 131,131 tonnes in the week ending Oct. 27.That was almost equal with the week before and represents a crush capacity use of about 90 percent.Another crush plant has received a clean bill of health from the U.S. Food and Drug Administration and can now export canola meal to the United States.The Bunge plant at Altona, Man., had been on a watch list for salmonella bacteria in its meal.Still on the FDA watch list are crushing plants owned by ADM and Viterra.In Winnipeg on Friday, November canola rose $2.20 per tonne to $531.40 on 2,238 trades. Monday is the first delivery day for the November contract.The January contract rose $1.10 to $539.40 on 7,668 trades.The previous day’s best basis narrowed to $18.03 per tonne under the November contract in the par region, according to the Winnipeg ICE Futures daily report.We have changed our 14-day Relative Strength Index calculation to the one used by Reuters and others, which appears to be a more commonly used figure. The November contract RSI was 81. 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 per tonne. March was unchanged at $185.Chicago new crop November soybeans rose one cent to $12.26 US per bushel. January was steady at $12.36.December corn rose three cents to $5.82 per bu. December oats rose two cents to $3.68 per bu. March oats rose two cents to $3.8025.In New York, crude oil for December delivery fell 75 cents to $81.43 US per barrel.The Canadian dollar at noon was 98.15 cents US, up from 98.02 cents the previous trading day. The U.S. dollar at noon was $1.0188.Statistics Canada reported that GDP rose 0.3 percent in August, as expected, following a 0.1 percent drop in July.All eyes will be on the U.S. Federal Reserve meeting next week, when it is expected to buy treasury bonds to lower interest rates and stimulate the economy.The TSX composite index rose 112.15 points to close at 12,565.84. The S&P 500 fell less than one point to close at 1,183.26.For the week, TSX composite rose 0.6 percent, the Dow dipped 0.1 percent, the S&P 500 edged up 0.02 percent and the Nasdaq rose 1.1 percent.
Canola makes gains – for Oct. 29, 2010
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