Climbing soybeans lifted canola higher on Friday.Soybeans, corn and wheat all rose in Chicago, propelled by several factors:* A falling U.S. dollar that makes U.S. crops for affordable for offshore buyers.* Concerns about disappointing corn yields and about rain and flood damage in Minnesota.* Brisk soybean sales to China and worries about dry weather in Brazil.* Generally rising commodity prices, lifted by investors who think the U.S. is about to embark on another round of stimulus policies to spark life into the American economy.Canola continued to be supported by the slow pace of harvest. Environment Canada forecasts mostly sunny weather for the coming week allowing harvest to resume.Rain is forecast for dry areas of Russia but they might be too late to encourage seeding of the winter crop. Analysts believe the Black Sea winter wheat area will be down because the continuing drought discouraged farmers from seeding.The Canadian Oilseed Processors Association said members processed 105,588 tonnes of canola in the week ending Sept. 22. That was down about three percent from the previous week.This crop year, 801,729 tonnes have been processed, up from 556,184 tonnes at the same point last year.In Winnipeg, November canola jumped $9.40 per tonne to $485.30 on 14,486 trades. From the close last Friday to today’s close, the contract rose $9.10.The January contract today climbed $10.10 to $490.60 on 6,453 trades.The previous day’s best basis was $16.13 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 75 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.Winnipeg October barley was steady at $179 per tonne. December was steady and untraded at $182. Contracts further out, staring with December 2011, increased by $1.Chicago new crop November soybeans soared 32.5 cents to $11.26 US per bushel. January jumped 32.5 cents to $11.355.Influential palm oil and vegetable oil analyst Dorab Mistry said he expected soybeans to climb to $12 per bu. by December if dryness persists in Brazil.December oats rose 14 cents to $3.52 per bu. March oats rose 14 cents to $3.5825.In New York, crude oil for November delivery rose $1.31 to $76.49 US per barrel.The Canadian dollar at noon was 97.44 cents US, up from 96.99 the previous trading day. The U.S. dollar at noon was $1.0263. The TSX composite closed at 12,204.86, up 103.07 points. The S & P’s 500 Index rose 23.42 points to 1,148.25. The loonie rose as the U.S. greenback fell against most currencies. Reports of growing business confidence in Germany and information about growing demand for durable goods in some sectors of the U.S. economy led investors to shift money from the safety of the greenback into risk and growth oriented currencies and investments.The Canadian dollar is likely to strengthen to a record $1.15 versus the greenback by the end of next year, the chief economist of RBC Global Asset Management said Thursday. The prediction was based on higher interest rates in Canada, strong commodity prices, the relatively stronger economy in Canada and weakness in the U.S. dollar.
Soaring U.S. markets lift canola higher
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