China news pressures oilseeds lower

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Published: January 7, 2010

Commodities, including canola, were slammed by news that China was increasing interest rates to prevent its economy from overheating and causing inflation.

The move could slow demand for commodities, including oilseeds.

Limiting the loss was new investment fund money going into commodities and slow canola deliveries by farmers.

January canola, which is nearing expiry, closed at $407.90 per tonne, down $7.50 on five trades.

Most actively traded March fell $7.50 to close at $405.90 on 9,146 trades.

May fell $7.60 to close at $412.60 on 685 trades.

The Bank of Canada at noon Thursday said the Canadian dollar was worth 96.61 cents US, down from 96.77 cents on Jan. 6. The U.S. dollar was worth $1.0351 Cdn.

The Winnipeg January barley contract closed steady at $157.20 with no trades. March was steady at $154 on two trades.

Chicago March soybeans, the most active month, plunged 33 cents to $10.26 US per bushel.

Light crude oil in New York for February delivery fell to $82.66 US per barrel, down 52 cents, on the news from China.

Brazil’s crop supply agency Conab increased its estimate of 2009-10 soybean production to a record 65.16 million tonnes, up from the December forecast of 64.56 million tonnes.

The Buenos Aries Grain Exchange left its estimate of Argentine soybean seeded area at 47 million acres.

The U.S. Department of Agriculture report to be released Jan. 12 is expected to show a record US soybean crop, up slightly from the last report in December.

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