Canola futures rose on Tuesday on the strength of increased crusher buying, particularly of the new crop November contract.
November jumped $14.40 per tonne to $563.90.
Canola was also supported by slower farmer selling and by rising soy oil prices.
Corn futures rose on assessments that recent rain in Argentina was too late to prevent permanent damage to the corn crop.
However, the rain was in time to assist the soybean crop and soybean futures fell.
Wheat futures rose on new demand from North African countries that are buying to ensure they have supply just in case the next crops to be harvested run into problems and worsen the existing global shortage of quality wheat.
North African countries are noting the role high cost food played in the unrest in neighbouring Tunisia, which has seen rioting that forced president Zine Al Abidine Ben Ali to flee the country.
In Winnipeg, March canola rose $8.40 to $599.80 on 8,107 trades.
May rose $8.60 to $607.70
The November 2011 contract rose $14.40 to $563.90.
The previous day’s best basis was $31 under the March contract according to ICE Futures Canada in Winnipeg.
The March contract 14-day Relative Strength Index was 65. 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 rose $6 to $200 per tonne. July also rose $6 to $200.
Chicago March soybeans rose early but ended the day down 9.25 cents to $14.1325.
March corn rose 10.75 cents to $6.595 per bu.
March oats rose six cents to $3.98 per bu.
March Minneapolis hard spring wheat rose 15.75 cents to $9.06 per bu.
In New York, crude oil for February delivery fell 16 cents to $91.38 US per barrel.
The Canadian dollar at noon was $1.009 US, down from $1.014 the previous trading day. The U.S. dollar at noon was 99.11 cents Cdn. The Bank of Canada did not change its key lending rate and indicated it might keep rates steady for longer than the market had expected. The Canadian economy is recovering from the recession, but the strong loonie is holding back the manufacturing export sector. If the central bank increased interest rates, the loonie would likely soar even higher.
The Toronto Stock Exchange composite index rose 119.09 points to 13,559.20, as precious metals climbed higher.
Standard & Poor’s 500 Index was up 1.80 points at 1,295.04.
