Canola futures edged higher Tuesday as a stronger loonie offset some of the strength that came from rising soybean futures.
July canola closed at $579.70, up 40 cents.
The market is awaiting the Statistics Canada acreage report due Thursday, however analysts are uncertain how well it will reflect prevented seeding. The surveys were done in early to mid May, before the repeated rains in the southeastern Prairies stopped seeding progress.
Chicago markets were buoyed by the fall in the U.S. dollar and bargain buying, as prices are at a one-month low.
There were unconfirmed rumours that China might have bought corn.
Meteorologists on Tuesday predicted high pressure ridge building in the U.S. Midwest by late next week could lead to a buildup of heat that could harm the crop.
The U.S. dollar fell as traders became more optimistic that Europe will work out a rescue package to help debt-laden Greece.
Analysts expect the Greek government will survive a confidence vote today, paving the way for it to impose the austerity measures that EU members demand in exchange for 110 billion euros in aid from the European Union and the International Monetary Fund.
Winnipeg (per tonne)
Canola Jul 11 $579.70, up 40 cents
Canola Nov 11 $582.10, unchanged
Canola Jan 12 $589.10, up $1.30
Canola Mar 12 $595.40, up $2.80
The previous day’s best basis narrowed to $2.20 under the July contract according to ICE Futures Canada in Winnipeg.
The July contract’s 14-day Relative Strength Index was 46. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Jul 11 $205, unchanged
Chicago (per bushel)
Soybeans Jul 11 $13.4875, up 13.0 cents
Soybeans Aug 11 $13.4875, up 12.75
Soybeans Nov 11 $13.4975, up 14.25
Corn Jul 11 $7.075, up 7.0
Corn Dec 11 $6.8025, up 19.75
Oats Jul 11 $3.535, up 3.5
Oats Dec 11 $3.71, up 3.5
Minneapolis (per bushel)
Spring Wheat Jul 11 $9.0275, up 2.25 cents
Spring Wheat Sep 11 $8.8525, up 6.25
Spring Wheat Dec 11 $8.875, up 7.0
Light crude oil nearby futures in New York rose 14 cents to $93.40 US per barrel.
Optimism over a potential solution to the Greece debt problem lifted stock markets.
The Canadian dollar at noon was $1.0284 US, up from $1.0220 the previous trading day. The U.S. dollar at noon was 97.24 cents Cdn.
The Toronto Stock Exchange composite index ended up 205.62 points, or 1.6 percent, at 13,063.32.
The Standard and Poor’s 500 index gained 17.16 points, or 1.34 percent, to 1,295.52.
