Winnipeg canola futures jumped higher again Tuesday on the buying back of previously sold contracts and worries about wet seeding weather.
There are questions about how much canola will be seeded and about water damage to crops already seeded.
There was talk that as much as three million acres in Saskatchewan are too wet to seed.
Trade was heavy with a lot of the volume associated with rolling July contracts into November.
Prices were also supported by a lack of farmer selling.
Chicago soybeans edged lower on good U.S. crop progress and reports that Brazil’s soybean crop will be bigger than expected.
July canola rose $4.90 per tonne to $386.90 on 11,551 trades.
The previous day’s best basis narrowed to -70 cents per tonne off the July contract in the par region, according to the Winnipeg ICE Futures daily report.
The 14-day Relative Strength Index for July canola was 71, according to BarChart.com. The rule of thumb is an RSI of 30 indicates an oversold market and 70 indicates overbought.
New crop November canola rose $5 to $392.30 per tonne on 22,343 trades.
November 2011 fell $1 to $402 per tonne on 16 trades.
The Canadian dollar at noon was 95.08 cents US, up from 94.88 cents at noon the previous trading day. The U.S. dollar at noon was $1.0518 Cdn.
Winnipeg barley July was again untraded at $147.50. October fell 50 cents to $145. December was untraded at $150, with 10 outstanding contracts.
Chicago July soybeans fell four cents to $9.31 US per bushel; new-crop November fell 5.75 cents to $8.9425.
July oats rose 2.25 cents to $1.9625 per bu. December oats fell 1.25 cents to $2.0725 per bu.
In New York, crude oil for July delivery rose 55 cents to $71.99 per barrel.
While there are serious problems in Saskatchewan, the situation is better in Alberta.
The latest Alberta crop report said 89 percent of the crop was planted provincially as of June 3, up from 66 percent May 20.
Most regions were 92 percent complete or better, with the average pulled down by southern Alberta where 79 percent was complete. Overall, 59 percent of crops had emerged.
In canola, 95 percent had been seeded across the province and 65 percent had emerged.
