Winnipeg canola futures fell on Friday, pressured by farmer selling, profit taking and perceptions that the damage to the crop in Canada has been priced into the market.
Volume was light.
The market remains underpinned by the heat wave in Europe and uncertainty about the U.S. crop, which is doing well now but could face a hot August, a key month for setting soybean yield.
In Winnipeg, November canola fell 90 cents per tonne to $460 on 5,854 trades.
Over the week, from the close July 16 to the close July 23, the contract rose $5 per tonne.
The January contract fell 80 cents to $462.60 on 244 trades.
The previous day’s best basis was $5 per tonne under the November contract in the par region, according to the Winnipeg ICE Futures daily report.
The 14-day Relative Strength Index for November was 91 according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
The Canadian dollar at noon was 96.4 cents US, up from 96.38 cents at noon the previous trading day. The U.S. dollar at noon was $1.0373.
Winnipeg October barley was steady and untraded at $156.50 and December was $156.50.
Chicago August soybeans rose one cent to $10.17 US per bushel. Over the week, soybeans fell 2.5 cents.
September rose 0.5 cents $9.91. New-crop November rose two cents to $9.815.
September oats fell 0.5 cents to $2.545 per bu. December oats rose 0.75 cents to $2.6475 per bu.
In New York, crude oil for September delivery fell 32 cents to $78.98 US per barrel.
The Canadian Oilseed Processors Association reported that members crushed 114,906 tonnes of canola in the week ending July 21, up 4.5 percent from the previous week.
That represented a capacity use of 79.1 percent.
To date, the crush stands at 4.48 million tonnes, up from 3.95 million at the same time last year.
