Winnipeg old crop canola futures edged higher on Tuesday but new crop November dipped slightly.
Oilseed prices rose early, lifted by a United States Department of Agriculture report that shaved U.S. soybean-ending stocks. But the rally ran out of steam as farmers sold and traders began to return focus to the bumper South American soybean crop.
USDA raised its outlook for Brazilian soybean production to 66 million tonnes from 65 million. It kept Argentina steady at 53 million tonnes.
The canola market was supported by crusher buying, reflecting stronger weekly crush data.
Crush margins have improved recently thanks to stronger soybean oil prices.
Volume in the canola market was strong as traders rolled March contracts over to May.
March canola rose 20 cents to close at $385.90 per tonne on 9,325 trades.
May rose 40 cents to $392.10 on 6,654 trades. New crop November fell 20 cents to $404.50 tonne on 906 trades.
The Canadian dollar at noon Tuesday was 93.55 cents US, up slightly from 93.53 cents at noon the previous trading day. The U.S. dollar at noon was $1.069 Cdn.
The Winnipeg March barley contract was steady at $149 per tonne with 26 trades. May rose $1 to $154 on 25 trades.
March soybeans fell five cents to $9.245 US per bushel. November soybeans were $9.125 per bu.
Light crude oil in New York for March delivery closed at $73.86 US per barrel, up $1.97.
