Delayed seeding lifts canola prices

Worries that wet weather will force farmers to seed less canola than expected caused Winnipeg canola futures to jump higher on Monday.The Canadian Wheat Board on Monday said its forecast of one million unseeded acres in northeastern Saskatchewan was “very conservative.”The wet weather, with more rain forecast for this week, was also expected to damage canola already seeded.July canola rose $6.10 per tonne to $382 on 9,463 trades.The previous day’s best basis on the July contract narrowed to -80 cents per tonne off the July contract in the par region, according to the Winnipeg ICE Futures daily report.The 14-day Relative Strength Index for July canola was 61, according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates over bought.New crop November canola rose $6.20 to $387.30 per tonne on 8,061 trades.November 2011 rose $4.10 to $403 per tonne on 115 trades.The Canadian dollar at noon was 94.88 cents US, down from 95.09 cents at noon the previous trading day. The U.S. dollar at noon was $1.0540.Winnipeg barley July was again untraded at $147.50. December was untraded at $150, with 10 outstanding contracts.Chicago July soybeans were steady at $9.35 US per bushel; new-crop November was also steady at $9.July oats was steady at $1.94 per bu. December oats was also unchanged at $2.085 per bu.In New York, crude oil for July delivery fell seven cents to $71.44 per barrel.The U.S. Department of Agriculture said that as of Sunday, 84 percent of soybeans had been seeded, even with the five-year average. Seventy-five percent was in good to excellent condition.In corn, 94 percent had been seeded and 74 percent was in good to excellent condition, up from last year’s rate of 69 percent good to excellent.In spring wheat, 90 percent had emerged, slightly behind the five-year average and 83 percent was good to average, up from 73 percent last year.In winter wheat, 66 percent was good to excellent, up from 44 percent last year. Three percent of the winter wheat crop had been harvested.

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