Profit taking hits canola, grain markets

Sharply lower U.S. crop futures on Monday caused Winnipeg canola futures to fall.Profit taking was a feature after gains in recent weeks.Heavy rain fell in parts of the U.S. Midwest over the weekend causing local flooding but generally the rain was believed to be beneficial for U.S. soybean and corn crops.The U.S. Department of Agriculture on Monday said U.S. soybeans were 67 percent good to excellent, the same as a year ago.Corn is 72 percent good to excellent, up from 70 percent at the same time last year.Also, concerns about hot weather damaging western European wheat lessened, causing wheat, which has been the main driver of the grains complex, to fall.U.S. Food and Drug Administration has lifted restrictions on imports of Canadian canola meal from a Bunge Ltd. plant in Hamilton, Ont., said Reuters News Service.The FDA had put several canola plants on import alert status because of concerns about salmonella bacteria in the meal. The restrictions slashed meal exports to the United States, forcing crushers to export the livestock feed production overseas for smaller profit margins.Restrictions remain on several other crushing plants, including Bunge at Nipawin, Sask., and Altona, Man., two ADM Agri Industries plants and Viterra’s plant at Ste. Agathe, Man.Thunderstorms and hail remain a threat, but a drier trend on the Canadian Prairies this week is expected to speed development of late crops.In Winnipeg, November canola fell $8.40 per tonne to $451.60 on 9,378 trades.The January contract fell $8.10 to $454.50 on 508 trades.The previous day’s best basis was $5 per tonne under the November contract in the par region, according to the Winnipeg ICE Futures daily report.The 14-day Relative Strength Index for November was 76 according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.The Canadian dollar at noon was 96.97 cents US, up from 96.4 cents at noon the previous trading day. The U.S. dollar at noon was $1.0312.Winnipeg October barley was steady and untraded at $156.50 and December was $156.50.Chicago August soybeans fell 18.75 cents to $9.9825 US per bushel. September fell 16.25 cents $9.7475. New-crop November fell 15.5 cents to $9.66.September oats fell 3.75 cents to $2.51 per bu. December oats fell 2.5 cents to $2.6225 per bu. In New York, crude oil for September delivery was steady at $78.98 US per barrel.

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