Canola futures rose Friday, supported by a report that forecast U.S. soybean ending stocks would be less than expected.
The U.S. Department of Agriculture raised its soybean export estimate to a record 1.445 billion bushels in 2009-10 and its end stocks number was unchanged at 190 million bu., a three-week supply and smaller than the average of analysts’ expectations of 208 million bu.
USDA also raised its estimates of the Argentine and Brazilian soy crops by a total of 1.5 million tonnes, but the market had already factored that into prices.
Farmers and markets were worried about dry soil in the western Prairies but a blizzard was bringing much needed moisture to northwestern and central Saskatchewan during the day.
Environment Canada forecast as much as 20 centimetres of snow is some areas. More moisture was forecast for next week.
The Canadian dollar was slightly weakened by a disappointing monthly jobs report that showed the Canadian economy created 17,000 jobs in March, not the 23,000 expected. Unemployment remained at 8.2 percent.
The May canola contract rose $1 to $381.10 per tonne on 7,697 trades. Over the week, the contract rose 40 cents.
The previous day’s best basis was steady at -$1.75 per tonne off the May contract in the par region, according to the Winnipeg ICE Futures daily report.
The 14-day Relative Strength Index for May canola was 57, according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates over bought.
July canola rose $1.50 to $387.90 on 5,219 trades.
New crop November rose $1.80 to $391.90 per tonne on 1,388 trades.
The Canadian dollar at noon was 99.45 cents US, down from 99.8 cents at noon the previous trading day. The U.S. dollar at noon was $1.0055.
Winnipeg barley was untraded. The May contract was steady at $154 per tonne. July was $145.50. December was $150.
Chicago May soybeans rose 5.75 cents to $9.5225 US per bushel. November soybeans fell one cents to $9.365 per bu.
May oats fell 2.5 cents to $2.15 US per bu. USDA raised its forecast of year end corn stocks by 100 million bu. to 1.899 billion bu., which would be the largest in four years.
Light crude oil for May delivery fell 47 cents to $84.92 US per barrel.
The Canadian Oilseed Processors Association reported members crushed 105,236 tonnes in the week to April 7, down 3.3 percent from the previous week.
The stronger loonie has weakened crusher profit margins.
