New crop canola futures rose on Wednesday, supported by continuing weather problems.
New crop canola was also supported by a weaker Canadian dollar, which fell after a report that showed the Canadian economy did not grow in April. This reduced the expectation of the need for an interest hike this summer.
The July canola contract fell as traders liquidated positions and moved to the November contract before the July contract moves into delivery mode on July 2.
Barley futures rose, following the surprising U.S. Department of Agriculture report released this morning that showed lower than expected U.S. corn acres and corn stocks.
USDA said soybean stocks were less than expected, supporting the nearby contract, but said soybean acreage was larger than expected, putting downward pressure on new crop contracts.
In Winnipeg, July canola fell $7.60 per tonne Wednesday to $423.80 on 248 trades. The July contract will move into delivery mode July 2 and expires July 14.
The previous day’s best basis was $12 per tonne off the July contract in the par region, according to the Winnipeg ICE Futures daily report.
New crop November canola, the most traded contract, rose $2.50 per tonne to $416.80 on 8,158 trades.
The 14-day Relative Strength Index for July canola was 67, according to BarChart.com. The 14-day RSI for November was 65. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicate over bought.
The Canadian dollar at noon was 94.29 cents US, down from 94.98 cents at noon the previous trading day. The U.S. dollar at noon was $1.0606 Can.
Winnipeg barley was untraded but prices were adjusted. July rose $3 per tonne to $166. October rose 2.10 to $152.50. December rose 2.10 to $152.50.
Chicago July soybeans rose 1.25 cents to $9.485 US per bushel; new-crop November fell 9.5 cents to $9.025.
July oats at one point was up the 20 cent limit but closed up 6.5 cents to $2.55 per bu. December oats were unchanged at $2.53 per bu. Oats were propelled mainly by rising corn. July corn finished the day up 29.25 cents or nine percent.
In New York, crude oil for July delivery fell 31 cents to $75.63 per barrel.
