Another down day for the Chicago soybean market pushed Winnipeg canola lower on Tuesday.
Soybeans fell because the U.S. dollar appreciated against most world currencies and rain in Argentina improved the outlook for the world’s third largest soybean exporter.
January canola settled at $397.40 per tonne, down $3.60 from the previous day on a volume of 1,467 contracts.
March fell $4.10 to close at $404.10 per tonne on a volume of 8,599 contracts.
May fell $4.50 to $410.40 on 299 trades.
The Bank of Canada at noon Tuesday said the Canadian dollar was worth 94.73 cents US, up from 94.39 cents on Monday. The U.S. dollar was worth $1.0556 Cdn.
While the greenback fell against the loonie, it rose against other currencies, hitting a two-month high against Japan’s yen.
The Winnipeg January barley contract fell $4 to $157 per tonne with no trades and March was steady at $155 with no trades.
Chicago January soybeans fell 10 cents to $9.91 US per bushel.
The Canola Council of Canada said Tuesday it hoped that exporters would get Chinese approval in January to ship canola to approved ports. In November, China said it would accept Canadian and Australian canola only if it tested free of blackleg plant disease. Later it identified ports outside of its rapeseed growing region that could accept imported canola.
Industry rumours are that two large ships now in Vancouver are loading canola in hopes of shipping to China.
Other news was negative for canola prices. The United States Food and Drug Administration put an ADM Agri-Industries crushing plant in Windsor, Ont., on a list of plants subject to an import alert, which allows FDA inspectors to refuse admission of a product with no physical inspection.
