Canola futures closed mixed on Monday in light trade with nearby contracts falling but deferred months rising.
Questions about crop size and weather remain the key factor in canola prices. Storms lashed southern Manitoba over the weekend delivering heavy rain and hail in some places.
There has been little movement in the new crop November contract in recent days, but July rose strongly last week.
While canola’s cropping problems and the presence of new crushers give it independent strength, oilseeds generally suffer from ideas that the U.S. could produce a huge crop this year although some soybeans are suffering from too much rain right now. Also, South America still has large stocks from its record harvest.
Also, there are good supplies of other competing vegetable oil crops such as cotton seed and palm.
In Winnipeg July canola fell $2.70 per tonne on Monday to $434.90 on 2,341 trades.
The previous day’s best basis was $12 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 79, according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates over bought.
New crop November canola fell 10 cents per tonne to $418.90 on 6,117 trades. More distant contact months rose.
The Canadian dollar at noon was 96.74 cents US, up from 96.43 cents at noon the previous trading day. The U.S. dollar at noon was $1.0337 Cdn. Gold weakened on Monday. The Canadian gross domestic product figure for April comes out on Wednesday, providing guidance on how the domestic economy is doing.
Winnipeg barley was untraded. July was $155. October was $150.40. December was $150.40.
Chicago July soybeans fell two cents to $9.55 US per bushel; new-crop November rose 6.5 cents to $9.185.
July oats fell 2.5 cents to $2.615 per bu. December oats fell 0.5 cents to $2.625 per bu. Corn was pressured lower by expectations of a bumper crop in the United States.
In New York, crude oil for July delivery fell 61 cents to $78.25 per barrel.
