Weak soybean prices dragged down Winnipeg canola futures in light trade on Monday.
The prospect of a huge South American soybean crop continued to weigh on oilseed prices. A Brazilian forecaster, Agroconsult, increased its soybean outlook on Monday to 65.1 million tonnes. Last year Brazil produced 57 million tonnes.
March canola fell $1.80 to close at $383.90 per tonne on 4,628 trades.
May fell $1.70 to close at $390.50 on 990 trades.
New crop November fell $1.40 to $402.90 on 419 trades.
The 14-day Relative Strength Index for March canola on Jan. 25 was 22. The rule of thumb is an RSI of 30 and lower indicates an over sold market while 70 and higher indicates over bought conditions.
The Bank of Canada at noon Monday said the Canadian dollar was worth 94.50 cents US, down from 94.66 cents the previous trading day. The U.S. dollar was worth $1.0451 Cdn.
The Winnipeg March barley contract rose $1.20 to $150 per tonne with no trades. May was steady at $155 on no trades.
March soybeans fell 11 cents to $9.405 US per bushel.
Light crude oil in New York for February delivery rose to $75.10 US per barrel, up 56 cents.
