Worries on Monday that surging crude oil prices will slow the global economy pressured crop prices lower, including canola.
The increase in violence in Libya’s revolution had traders on edge and equity markets also fell.
Early in the day, May canola broke through $600 per tonne, supported by strong palm oil prices overnight that were supported by thoughts that high crude oil prices would cause more vegetable oil to be used for biofuel
But falling soybeans later in the day dragged canola down to close lower.
Favourable weather for harvesting and crop maturation in Argentina weighed on soybeans.
Wheat was pressured down by forecasts that say a storm that will hit the U.S. hard red winter wheat region will deliver moisture over a wider area that first forecast.
Winnipeg
Canola Mar $5.88.50 Cdn per tonne, down $5.10
Canola May $5.92.60, down $5.00
Canola Jul $5.99.50, down $4.90
Canola Nov $5.71.80, down $5.80
The previous day’s best basis widened to $27 under the May contract according to ICE Futures Canada in Winnipeg.
The May contract 14-day Relative Strength Index was 49. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Mar $194 unchanged and untraded
Chicago
Soybeans Mar $13.8775 per bu., down 20 cents
Soybeans May $13.95, down 19 cents
Soybeans Nov $13.5475, down 6.25 cents
Corn Mar $7.1075, down 10.5 cents
Corn May $7.175, down 10.5 cents
Oats Mar $3.785, down 2.5 cents
Oats May $3.86, down 4 cents
Minneapolis
Spring Wheat Mar $9.405, down 12.5 cents
Spring Wheat May $9.4375, down 21.5 cents
Spring Wheat Dec $9.47, down 21.5 cents
Light crude oil at New York rose $1.02 per barrel to $105.44 for the nearby contract.
The Canadian dollar at noon was $1.0269 US, down slightly from $1.0294 the previous trading day. The U.S. dollar at noon was 97.38 cents Cdn.
The Toronto Stock Exchange composite index fell 160.42 points to 14,092.35.
The Standard & Poor’s 500 Index dropped 11.01 points to 1,310.14.
