Canola climbed slightly higher on Friday and the March contract posted an $18.60 per tonne gain from the previous week’s close.
The market is caught between forecasts for big seeded acreage gains and the outlook for a muddy seeding season that will frustrate farmers’ efforts.
Canola prices climbed today on unconfirmed reports of new export business and stronger soybeans.
Soybeans climbed on stronger crude oil prices, which rose on increase fighting in Libya, and a labour dispute at Argentina’s largest port, which had impeded its soybean exports. Reports came late in the day that the labour dispute was settled.
Private analysis company Informa forecast the Brazilian soybean crop at 71.4 million tonnes, up from 69.3 million in its last forecast. However, traders discounted this forecast based on the heavy rain and flooding that is impeding the harvest in the South American country.
Corn climbed to $7.35 per bu. at one point, the highest prices since July 2008, but then backed off on profit taking.
Spring flooding is a danger in the upper U.S. Midwest. Accumulated precipitation this winter to the end of February, from northern Iowa into the southern two-thirds of Minnesota and westward to the Dakotas, ranged from 125 percent of normal to well over 200 percent, meteorologists say.
Wheat edged higher. A storm forecast for next week could deliver much needed moisture to the western part of the U.S. winter wheat belt but rain will be spotty and accompanied by strong wind that could cause damage in areas that do not get much rain.
The head of China’s State Administration of Grain said emergency irrigation and cloud seeding has saved its winter wheat crop, allowing it to continue to be mostly self sufficient in grain.
The Canadian Oilseed Processors Association said members crushed 104,809 tonnes of canola in the week ending March 2. That was down 12 percent from the week before and the lowest level in months.
Winnipeg
Canola Mar 11 $593.60 Cdn per tonne up 50 cents. March is nearing expiry and had only 12 trades. May volume was 13,037.
Canola May 11 $597.60 up $1.50
Canola Jul 11 $604.40 up $1.30
Canola Nov 11 $577.60 down $1.60
The previous day’s best basis widened to $25.19 under the May contract according to ICE Futures Canada in Winnipeg.
The May contract 14-day Relative Strength Index was 52. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Mar 11 $194 unchanged. There is no open interest.
Chicago
Soybeans Mar 11 $14.0775 US per bu. up 2.25 cents
Soybeans May 11 $14.14 up two cents
Soybeans Nov 11 $13.61 down 1.5 cents
Corn Mar 11 $7.2125 down 8.5 cents
Corn May 11 $7.28 down 8.75 cents
Oats Mar 11 $3.81 down three cents
Oats May 11 $3.90 down four cents
Minneapolis
Spring Wheat Mar 11 $9.53 up 6.5 cents
Spring Wheat May 11 $9.6525 up 13.75 cents
Spring Wheat Dec 11 $9.685 up 6.25 cents
Light crude oil at New York jumped $2.51 per barrel to $104.42 for the nearby contract.
The Canadian dollar at noon was $1.0294 US, up slightly from $1.0260 the previous trading day. The U.S. dollar at noon was 97.14 cents Cdn.
The Toronto Stock Exchange composite index rose 38.05 points to 14,252.77. On the week, it gained 1.4 percent.
The Standard & Poor’s 500 Index dropped 9.82 points to 1,321.15.
For the week, the Dow rose 0.3 percent and the S&P 500 and Nasdaq were up 0.1 percent each.
The S&P 500 is up 26 percent since the start of September when the recent rally began.
