The Canadian dollar fell more than one cent on Thursday, which helped stimulate domestic and export demand for canola.The nearby and November Winnipeg ICE canola futures contracts rose, but deferred months were steady or lower.The weak dollar offset pressure from good seeding and germinating weather. However, rain is forecast for large parts of the Prairies for the long weekend, which will delay seeding progress.The loonie fell on pressure from outside markets. Stock market indexes fell sharply as traders’ worries increased about the possibility of Europe’s debt crisis spreading around the world.Soybeans were supported by talk that some buyers are switching soybean orders to the U.S. from South America. South American farmers are rejecting current bids and keeping bins closed, driving up local prices. Also ocean freight from the U.S. to China is cheaper than from South America.The most active July canola contract rose $3.40 to $379 per tonne on 6,421 trades.The previous day’s best basis was steady at -$3.75 per tonne off the July contract in the par region, according to the Winnipeg ICE Futures daily report.The 14-day Relative Strength Index for July canola rose to 37, according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates over bought.New crop November rose 30 cents to $383.60 per tonne on 3.074 trades.The Canadian dollar at noon was 93.82 cents US, down from 95.10 cents at noon the previous trading day. The U.S. dollar at noon was $1.0659.The euro rose on talk that European central banks might take action to support the beleaguered currency.Winnipeg barley contracts were again untraded. July was steady at $145.50. December was steady at $150.Chicago July soybeans rose 5.5 cent to $9.44 US per bushel; new crop November rose 2.25 cents to $9.08.May oats fell 1.25 cents to $1.94 per bu. December oats fell 1.25 cents to $2.1275 per bu. In New York, crude oil for June delivery fell $1.86 to $68.01 per barrel.
Weak loonie lifts canola
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