A port strike in Argentina, stronger crude oil prices and worries about freezing weather in the U.S. winter wheat belt pushed all crop prices higher on Monday.
As January came to a close with canola posting a 3.4 percent monthly gain, the oilseed marked its longest rally since 1980.
Lack of farmer selling because of cold weather kept hedges light.
The port strike in Argentina is limiting soybean and corn exports from the country. That offset the negative price influence of improved moisture in the country.
Oilseed prices were also supported by rising palm oil, lifted by flooding in Malaysia, the world’s largest producer, after torrential rain sparked by La Nina. Washed out roads are preventing delivery to palm processing plants.
The crisis in Egypt lifted crude oil prices as traders worry the unrest will spread to oil producing countries in the Middle East.
Stronger oil lifted corn because of its link through ethanol.
Wheat jumped higher as traders worried about the effect of a blizzard forecast to hit Kansas and other southern plains states on Tuesday.
The storm will deliver welcome moisture, but the western part of the hard red winter wheat belt might not get enough snow to protect the crop from freezing temperatures.
In Winnipeg, March canola rose $6 to $603.60 on 8,793 trades.
May rose $5.90 to $612.40 on 4,365 trades.
The new crop November 2011 contract rose $4.50 to $572.
The previous day’s best basis narrowed to $26 under the March contract according to ICE Futures Canada in Winnipeg.
The March contract 14-day Relative Strength Index was 63. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
March barley futures were steady and untraded at $194. May was steady at $200 per tonne.
Chicago March soybeans rose 15 cents to $14.13 per bushel.
March corn fell 15.5 cents to $6.595 per bu.
March oats fell 10.5 cents to $396 per bu.
March Minneapolis hard spring wheat fell 18.25 cents to $9.7975 per bu.
In New York, crude oil for March delivery rose $2.85 to $92.19 US per barrel.
The Canadian dollar at noon was 99.78 US, down from 1.001 cents the previous trading day. The U.S. dollar at noon was $1.0022 Can.
The Toronto Stock Exchange composite index rose 114.41 points to 13,551.99, with oil company shares benefitting from the strong price of crude.
The Standard & Poor’s 500 Index rose 9.78 points to 1,286.12.
