Expectations that the United States Department of Agriculture on Tuesday will tighten its forecast of year-end stocks of grain and oilseeds lifted the canola market on Monday.
Oilseed prices were also supported by thoughts that the market is oversold after a wave of selling in recent weeks.
March canola rose $5.40 to close at $385.70 per tonne on 8,999 trades.
May rose $5.30 to $391.70 on 9,957 trades. New crop November rose $4.40 to $404.70 tonne on 299 trades.
The Canadian dollar at noon Monday was 93.53 cents US, up from 93.24 cents at noon the previous trading day. The U.S. dollar at noon was $1.0692 Cdn.
The Winnipeg March barley contract rose 50 cents to $149 per tonne with 50 trades. May rose 50 cents to $153 on no trade.
March soybeans rose 16 cents to $9.295 US per bushel. November soybeans were $9.145 per bu.
Light crude oil in New York for March delivery closed at $71.89 US per barrel, up 71 cents.
In the markets section of the Feb. 11 Western Producer we will have a story on a canola outlook by Thomas Mielke of Oil World.
Mielke says the higher oil content of canola will support its price relative to soybeans as the market is pressured by the large South American crop. Shrinking livestock herds are reducing demand for meal.
We are already seeing this in the oilseed complex.
From the start of 2010 to Feb. 8, Chicago soybeans are down 10.6 percent. Soy meal is down 12.6 percent but soy oil is down only 5.9 percent
Canola has fallen about 6.6 percent in that time.
Our markets reporter Ed White will have a story in the Feb. 11 paper surveying opinions on whether commodity markets have hit bottom and are about to rise or are simply resting before another fall.
