Oilseed futures rose on Thursday with canola supported by a weaker loonie, export rumours and rising Chicago soybeans.
There was talk in the market that China had purchased Canadian canola. China also bought American corn and soybeans this week, picking up supply at bargain prices to rebuild depleted stocks.
November canola closed at $535.30 per tonne, up $5.80, or 1.1 percent
Corn was slightly lower and nearby spring wheat futures fell a little more than two percent.
Wheat is suffering a hang over effect from the Wednesday USDA report that made significant increases to its production estimates for the former Soviet Union, Australia and European Union. North American wheat will face stiff competition from Russian, Kazakh and Ukraine wheat.
On the other hand, some analysts believe there will be a pick up in the amount of wheat being fed to livestock because it is cheaper than corn.
In fact, the USDA report shaved its demand number for corn and wheat and some analysts question that. They note that in past recessions, grain demand continued to rise.
The Canadian dollar fell as crude oil prices dipped after a several day rally. Soft China trade data added to assessments about a weak global economy.
Winnipeg (per tonne)
Canola Nov 11 $535.30, up $5.80 (+1.10%)
Canola Jan 12 $544.90, up $5.80 (+1.08%)
Canola Mar 12 $553.90, up $5.70 (+1.04%)
Canola May 12 $561.30, up $5.50 (+0.99%)
The previous day’s best basis was $22.25 under the November contract according to ICE Futures Canada in Winnipeg.
The November contract’s 14-day Relative Strength Index was 44. The rule of thumb is an RSI of 30 indicates an over sold and 70 is over bought.
Western Barley Oct 11 $210.00 unchanged
Chicago (per bushel)
Soybeans Nov 11 $12.57, up 17.5 cents (+1.41%)
Soybeans Jan 12 $12.6675, up 17.25 (+1.38%)
Soybeans Mar 12 $12.74, up 17.0 (+1.35%)
Corn Dec 11 $6.3825, down 2.5 (-0.39%)
Corn Mar 12 $6.4975, down 3.0 (-0.46%)
Oats Dec 11 $3.4175, down 3.25 (-0.94%)
Oats Mar 12 $3.5075, down 3.25 (-0.92%)
Minneapolis (per bushel)
Spring Wheat Dec 11 $8.8325, down 20.5 cents (-2.27%)
Spring Wheat Mar 12 $8.3025, down 16.0 (-1.89%)
Spring Wheat May 12 $8.1225, down 14.5 (-1.75%)
Light crude oil nearby futures in New York fell $1.34 to $84.23 US per barrel.
The Canadian dollar at noon was 97.68 cents US, down from 98.39 cents the previous trading day. The U.S. dollar at noon was $1.0238 Cdn.
In a preliminary tally, the Toronto Stock Exchange composite index closed down 118.07 points, or 0.98 percent, at 11,911.89.
The Standard & Poor’s 500 Index fell 3.59 points, or 0.30 percent, to finish unofficially at 1,203.66.
