Loonie falls almost two cents, supports canola

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The Canadian dollar fell nearly two cents on the international financial turmoil associated with Europe’s debt crisis and growing tensions between North and South Korea.The weaker loonie supported Winnipeg canola futures, helping July, November and January contracts post small gains.Weekend rain and more moisture in the forecast have halted seeding in large parts of the Prairies.Traders this will week will begin rolling out of the July contract and into the November contract.Chicago soybeans fell to a two-month low on the stronger U.S. dollar, the general financial uncertainty and a return to warmer, drier weather in the U.S. Midwest. The most active July canola contract rose 40 cents to $378.70 per tonne on 7,515 trades. The previous day’s best basis was -$3.75 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 39, 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 90 cents to $384.20 per tonne on 7.987 trades.The Canadian dollar at noon was 92.78 cents US, down from 94.61 cents at noon the previous trading day. The U.S. dollar at noon was $1.0778 Cdn.Winnipeg barley contracts were again untraded. July was steady at $145.50. December was steady at $150.Chicago July soybeans fell 10 cent to $9.305 US per bushel; new-crop November fell 12.5 cents to $9.03.May oats fell 7.5 cents to $1.915 per bu. December oats fell 6.25 cents to $2.115 per bu. In New York, crude oil for June delivery fell $1.46 to $68.75 per barrel.The Canadian Oilseeds Processors Association reported that in the week ending May 19 its members crushed 114,741 tonnes of canola, an increase of almost five percent from the week before. That represented a capacity use rate of 89.3 percent, the best level this crop year.A weaker loonie improves crushers’ profit margins and encourages them to process more canola.

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