Weather pushes canola futures higher

Worries about the impact of the wet spring on acreage and crop quality forced Winnipeg canola futures higher.Private analysts have a wide range of thoughts about seeding progress, with the forecasts of unseeded acres ranging from one million to five million, mostly in Saskatchewan.Statistics Canada releases its seeded acreage report on June 23.Markets generally were also supported by a report that Chinese exports grew about 50 percent from a year ago, indicating that that the Asian giant, a huge importer of commodities, has a roaring economy.Also supportive was a report from the China National Grain and Oils Information Centre. It said the country will likely produce a large corn crop this year, but rapeseed production could fall to 12.6 million tonnes from 13.66 million last year.Soybean production is expected to fall to 14.5 million tonnes from 15 million last year and wheat is expected to be steady at 115.1 million tonnes.Corn production is expected to climb to 168 million tonnes from 164 million last year.Chicago soybean futures rose on news of fresh sales to China.Limiting the price increases were a stronger Canadian dollar and excellent growing weather in the U.S. Midwest.There was a huge volume of trade in Winnipeg associated with the rolling forward of contracts into November.July canola rose $4.20 per tonne to $391.10 on 16,652 trades.The previous day’s best basis narrowed to -60 cents 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 was 72, 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 canola rose $2.80 to $395.10 per tonne on 26,234 trades.The Canadian dollar at noon was 96.2 cents US, up from 95.08 cents at noon the previous trading day. The U.S. dollar at noon was $1.0395.Winnipeg barley July was again untraded at $147.50. October was steady at $145. December was untraded at $150, with 10 outstanding contracts.Chicago July soybeans rose 12.5 cents to $9.435 US per bushel, new crop November rose only 2.25 cents to $8.965.July oats rose 7.75 cents to $2.04 per bu. December oats rose 5.75 cents to $2.13 per bu. In New York, crude oil for July delivery rose $2.39 to $74.38 per barrel.The United States Department of Agriculture releases its monthly crop size report on Thursday.

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