Canola rose, supported by good demand and stronger soybean and crude oil prices.
The canola basis narrowed. There was also unconfirmed talk that there were new export inquiries.
Environment Canada’s latest three month forecast for March though May sees cooler than normal conditions on the Prairies throughout the period.
It also sees wetter than normal conditions in most of Saskatchewan except for the southeast where normal moisture is expected. Northwestern Manitoba and the Interlake district, as well as northwestern Alberta and the Peace region also have a wet forecast.
Southern Manitoba and most of Alberta are forecast to experience normal moisture in the period.
For maps of the forecasts, see www.weatheroffice.gc.ca/saisons/index_e.html
Crude oil prices were supported by worries about violence in Libya, where forces loyal to dictator Muammar Gaddafi bombed areas close to a key coastal oil installation.
Soybeans rose on concerns about excessive rain in Brazil where the soybean crop is being harvested. Also, talk that China might lift price controls on vegetable oil supported oilseeds.
Corn fell mostly on technical grounds when rallying prices early in the day failed to break through resistance. Funds liquidated long positions and there was unwinding of corn-wheat and corn-soy spreads.
China said its farmers would likely increase corn acreage this spring.
Wheat was mixed with Chicago and Minneapolis markets up a little and Kansas City down slightly. More dry weather in the U.S. hard red winter wheat supported prices. China’s drought area has shrunk.
Winnipeg
Canola Mar 11 $585.10 Cdn per tonne up $7.40
Canola May 11 $590.10 up $7.50
Canola Jul 11 $597.50 up $7.70
Canola Nov 11 $573.30 up $1.80
The previous day’s best basis narrowed to $7.80 under the May contract according to ICE Futures Canada in Winnipeg.
The May contract 14-day Relative Strength Index was 48. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Mar 11 $194 per tonne unchanged and untraded.
Chicago
Soybeans Mar 11 $13.8725 US per bu. up 19.75 cents
Soybeans May 11 $13.9425 up 19 cents
Soybeans Nov 11 $13.4575 up 17.5 cents
Corn Mar 11 $7.14 down 13.25 cents
Corn May 11 $7.215 down 14 cents
Oats Mar 11 $3.805 up 0.5 cents
Oats May 11 $3.90 up 0.5 cents
Minneapolis
Spring Wheat Mar 11 $9.315 unchanged
Spring Wheat May 11 $9.405 up one cent
Spring Wheat Dec 11 $9.535 down one cent
Light crude oil at New York rose $2.60 per barrel to $102.23 for the nearby contract.
The Canadian dollar at noon was $1.0273 US, up from $1.0264 the previous trading day. The U.S. dollar at noon was 97.34 cents Cdn.
The Toronto Stock Exchange composite index rose 21.17 points to 14,144.02.
The Standard & Poor’s 500 Index rose 2.10 points to 1,308.43.
