Canola futures fell Tuesday as the Canadian dollar rose, but spring wheat futures rose.
The loonie shot more than one cent higher on monthly inflation data that showed Canada’s annual inflation rate in March jumped to 3.3 percent from 2.2 percent in February.
The increase raised expectations that the Bank of Canada will increase interest rates, a move that will support the loonie.
The stronger loonie discourages exports of canola seed and canola oil.
The decline in canola futures was limited by continuing concern about seeding delays in Western Canada. Warmer, sunny weather is forecast for the Prairies for the rest of this week and into the Easter weekend.
Wheat rose on concerns about drought in the southern plains and delayed seeding in Canada and North Dakota. Wheat condition ratings issued Monday fell in the main hard red winter wheat states of Kansas, Oklahoma and Texas.
Wheat was also supported by concerns about dry weather in western Europe and by dryness in China’s winter wheat area.
Old crop soybeans fell as China cancelled some orders and trade shifted to South America from the United States.
New crop soybeans were supported by concerns about late seeding in the Midwest.
Old crop corn fell on long liquidation but new crop rose on slow Midwest seeding.
Winnipeg (per tonne)
Canola May 11 $570.40, down $3.50
Canola Jul 11 $579.30, down $3.50
Canola Nov 11 $578.30, down $3.50
Canola Jan 12 $585.30, down $2.60
The previous day’s best basis was $6.10 under the May contract according to ICE Futures Canada in Winnipeg.
The May contract’s Relative Strength Index was 44. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley May 11 $200, unchanged
Chicago (per bushel)
Soybeans May 11 $13.42, down 2.25 cents
Soybeans Jul 11 $13.54, down 1.75
Soybeans Nov 11 $13.54, up 4.75
Corn May 11 $7.49, down 2.75
Corn Dec 11 $6.76, up 7.75
Oats May 11 $3.94, up 6.5
Oats Dec 11 $4.135, up 7.0
Chicago (per bushel)
Spring Wheat May 11 $9.43, up 29.0 cents
Spring Wheat Jul 11 $9.515, up 28.75
Spring Wheat Dec 11 $9.6775, up 28.0
Light crude oil nearby futures in New York rose $1.03 to $108.15 US per barrel.
The Canadian dollar at noon was $1.0448 US, up from $1.0319 the previous trading day. The U.S. dollar at noon was 95.71 cents Cdn.
The Toronto Stock Exchange composite index rose 34.50 points, or 0.25 percent, to 13,736.83.
The Standard and Poor’s 500 index rose 7.48 points, or 0.57 percent, to 1312.62.
Gold rose to a new record high of $1,500 an ounce as investors seek a safe haven in uncertain times.
