Exchange rates were a key factor pressuring crop prices lower on Monday as Japan intervened in the market to drive down the inflated yen.
Canola mostly followed soybeans lower.
November canola settled at $523.50 per tonne, down $6.20, down and January settled at $529.50, down $1.30.
The worries over Europe’s debt in recent weeks had pushed the yen higher to a level that the Japanese government felt was unsustainable so it sold off yen to drive it down. That drove the American dollar higher, lessening the value of crop commodities traded on U.S. exchanges.
Crop prices also were pressured as traders shifted back to concern about the ability of Europe’s leaders to put their debt control plan into practice.
Crop prices were also hurt by the uncertainty caused by the bankruptcy of MF Global, a big commodities trader. The company suffered large losses associated with its increased holdings of European debt.
Winnipeg (per tonne)
Canola Nov 11 $523.50, down $6.20 (-1.17%)
Canola Jan 12 $529.50, down $1.30 (-0.24%)
Canola Mar 12 $537.60, down $1.20 (-0.22%)
Canola May 12 $540.40, down $3.40 (-0.63%)
The previous day’s best basis narrowed to $13.90 under the November contract, according to ICE Futures Canada in Winnipeg.
The November contract’s 14-day Relative Strength Index was 41. The rule of thumb is an RSI of 30 indicates an over sold and 70 is over bought.
Western Barley Dec 11 $216, unchanged
Chicago (per bushel)
Soybeans Nov 11 $12.075, down 9.5 (-0.78%)
Soybeans Jan 12 $12.1725, down 8.75 (-0.71%)
Soybeans Mar 12 $12.27, down 8.75 (-0.71%)
Corn Dec 11 $6.47, down 8.0 (-1.22%)
Corn Mar 12 $6.59, down 8.0 (-1.20%)
Oats Dec 11 $3.345, down 1.75 (-0.52%)
Oats Mar 12 $3.45, down 2.0 (-0.58%)
Minneapolis (per bushel)
Spring Wheat Dec 11 $9.0875, down 11.75 (-1.28%)
Spring Wheat Mar 12 $8.60, down 3.25 (-0.38%)
Spring Wheat May 12 $8.37, down 9.75 (-1.15%)
Light crude oil nearby futures in New York fell 13 cents to $93.19 US per barrel.
The Canadian dollar at noon was $1.0065 US, up from $1.0043 the previous trading day. The U.S. dollar at noon was 99.35 cents Cdn.
In a preliminary tally, the Toronto Stock Exchange composite index fell 267.45 points, or 2.1 percent, to 12,252.06.
The Standard & Poor’s 500 Index closed down 31.89 points, or 2.48 percent, to 1,253.20.
