Canola futures jumped strongly higher, supported by good demand from domestic crushers and exporters and stronger soybean prices.
Generally, markets bounced back from the shock on Tuesday when China unexpectedly raised its interest rates to cool off the overheated economy.
That decision had caused investors to reduce exposure to riskier sectors such as commodities by moving into the U.S. dollar.
However, on Wednesday markets decided they overreacted and the American dollar fell.
The weaker greenback supported agricultural commodities in Chicago today. Also, strong Chinese demand for soybeans lifted the oilseed.
Strong crude oil prices also supported oilseeds.
In Winnipeg, November canola rose $8.90 per tonne to $513.90 on 7,945 trades.
The January contract rose $9.90 to $521.70 on 12,307 trades.
The previous day’s best basis widened slightly to $20 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 76 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.
December barley futures were unchanged at $180 per tonne. March was unchanged at $185.
Chicago new crop November soybeans rose 32 cents to $12.12 US per bushel. January rose 32.25 cents to $12.2375.
December corn jumped 27.5 cents higher to $5.735 per bu. December oats rose 10 cents to $3.55 per bu. March oats rose 10.25 cents to $3.66.
In New York, crude oil for November delivery rose $2.38 to $82.54 US per barrel.
The Canadian dollar at noon was 97.61 cents US, up from 97.11 cents the previous trading day. The U.S. dollar at noon was $1.0245.
The TSX composite index closed at 12,649.92, up 79.37 points. The S&P 500 rose 12.27 points to close at 1,178.17.
