Hot, dry weather in Argentina and southern Brazil helped lift crop futures, including canola, on Monday.
Crop prices were also supported by stronger crude oil, which was lifted by problems with the Alaska pipeline and a fire that damaged an oilsands producer in Alberta.
The Canadian and American dollars rose against the euro, which is struggling because of worries about Portugal’s debt situation.
Crop markets are awaiting the U.S. Department of Agriculture supply and demand report on Wednesday. Traders will closely watch whether USDA again tightens its forecast for year-end U.S. corn and soybean stocks.
A cold snap that will hit the U.S. hard red winter wheat area this week is expected to further stress the crop, which is suffering from dry weather.
In Winnipeg, most traded March canola rose $7 to $593.10 on 9,763 trades.
The January canola contract rose $7 to $588.40 per tonne on no trades. The contract expires Jan. 14.
The November 2011 contract rose $15.50 to $544.80.
The previous day’s best basis was $29 under the March contract according to ICE Futures Canada in Winnipeg.
The March contract 14-day Relative Strength Index was 64.
The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
March barley futures were steady at $194. There are only two contracts in open interest.
Chicago January soybeans rose 15.5 cents to $13.7325 US per bushel. Most traded March also rose 15.5 cents at $13.805.
March corn rose 12 cents to $6.07 per bu.
March oats rose 8.5 cents to $3.795 per bu.
March Minneapolis hard spring wheat fell 5.5 cents to $8.6525 per bu.
In New York, crude oil for February delivery rose $1.22 to $89.25 US per barrel.
The Canadian dollar at noon was $1.0079 US, up from $1.0066 the previous trading day. The U.S. dollar at noon was 99.25 cents Cdn.
The Toronto Stock Exchange composite index ended down 27.18 points to 13,245.12.
Standard & Poor’s 500 Index was off 1.75 points to 1,269.75.
