Oilseeds, including canola, rose on Monday as traders registered concern over inadequate moisture in Argentina.
Rain fell in the South American country over the weekend, but amounts were less than expected and hot weather is expected in the coming week.
Argentina is the world’s third largest soybean producer.
Rain in Brazil, the second largest producer is adequate.
A weaker loonie also supported canola futures. Volume was strong as traders rolled over January contracts into March.
Wheat futures rose on continued worries about the quality of Australia’s crop and on word from the head of the Russian Grain Union lobby group that the ban on exports might have to be extended if Russia fails to get a bumper crop in 2011.
The area of winter seeding this year is 38.3 million acres, down from 44.5 million a year ago. The government hopes to encourage an increase in spring planting. However, there are concerns about whether fertilizer supplies will be adequate in the spring.
Read the markets section in the Dec. 23 Western Producer for a story on the potential for drought in Iran and Iraq to affect wheat markets.
Last week U.S. lawmakers extended subsidies for American biofuel but on Monday engine makers sued the U.S. Environmental Protection Agency for its decision to allow vehicles built in 2007 or later to burn gas with 15 percent ethanol.
The engine makers say this will lead to confusion and situations where people will use E15 fuel in engines that are not suited for it and damage might result.
In Winnipeg, the January canola contract rose $6.10 to $566.60 per tonne on 11,218 trades.
The March contract rose $5.80 to $574.40 on 13,116 trades.
The November 2011 contract rose $4.50 to $521.50.
The previous day’s best basis was $21.03 under the nearby contract.
The January contract 14-day Relative Strength Index was 63.
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.
Chicago January soybeans rose 16.5 cents to $13.1525 US per bushel.
March corn rose three cents to $5.995 per bu.
March oats rose four cents to $3.905 per bu.
March Minneapolis hard spring wheat rose 17.5 cents to $8.595 per bu.
In New York, crude oil for February delivery rose 77 cents to $89.37 US per barrel.
The Canadian dollar at noon was 98.25 cents US, down from 98.78 cents the previous trading day. The U.S. dollar at noon was $1.0178 Cdn.
The TSX composite index fell 8.18 points to close at 13,193.28.
The Standard & Poor’s 500 rose 3.17 points to 1,247.08.
