July canola futures in Winnipeg jumped higher Friday, pressured by grain companies trying to get supplies from farmers.A stronger Canadian dollar limited gains in back months.Gains in July were also related to position evening as the July contract moves toward being the cash month.The spread between July and November rose to $18.60 per tonne, the highest in five years.Continued rain provided a strong foundation for the market.In Winnipeg, July canola rose $11.20 per tonne Friday to $437.60 on 3,837 trades. Over the week, the contract rose $17.60.The previous day’s best basis widened to $12 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 82, according to BarChart.com. The rule of thumb is an RSI of 30 indicates an oversold market and 70 indicates overbought.New crop November canola rose 60 cents per tonne to $419 on 12,930 trades. Over the week, November rose only 90 cents.The Canadian dollar at noon was 96.43 cents US, up from 95.86 cents at noon the previous trading day. The U.S. dollar at noon was $1.037 Cdn. The loonie was supported by higher crude oil, copper and gold prices.Winnipeg barley was untraded. July was $155. October was $150.40. December was $150.40.Chicago July soybeans rose 1.5 cents to $9.57 US per bushel; new-crop November was flat at $9.12.July oats closed down 10.5 cents to $2.64 per bu. December oats fell 13.5 cents to $2.63 per bu. Corn was pressured lower by expectations of a bumper crop in the United States.In New York, crude oil for July delivery rose $2.35 to $78.86 per barrel. A brewing tropical storm in the Caribbean threatened oil production in the Gulf of Mexico.The Canadian Oilseed Processors Association reported that members crushed 104,557 tonnes of canola in the week ending June 23, up 4.4 percent from the week before. That represents 81.4 percent capacity use.The crush remained above 100,000 tonnes per week despite the decline of the Winnipeg ICE canola board margin to $51.19 per tonne Friday. That is down from $119.52 a month ago, with the decline based on the strong run up in canola prices since rain prevented farmers from seeding all that they had intended.
July canola climbs $17.60 on week
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