Canola and Feed Grain Futures Decline at Winnipeg Commodity Exchange

Declines in canola and feed grain futures at the Winnipeg Commodity Exchange (WCE) on September 20, 2004, were triggered by reports of good harvest progress in parts of Saskatchewan and Manitoba, exacerbating downward price pressure. Canola futures were particularly affected, with commercial hedging and commodity funds contributing to the losses. Despite some support from a weaker Canadian dollar and inclement weather, tight supplies in the cash market and sluggish demand for feed wheat fueled further price declines.

Key Takeaways:

• Canola futures declined on September 20, 2004, due to reports of good harvest progress in Saskatchewan and Manitoba.
• Commodity funds and commercial hedging contributed to the losses, with some pressure coming from sharp declines in CBOT soybean and soyoil values.
• The absence of fresh demand for canola and losses overnight in Malaysian palm oil futures further undermined canola prices.
• Flaxseed futures, however, remained steady to firmer, with commercials being the main bidders and a shortage of willing sellers amplifying the upward price action.
• Western barley futures were narrowly mixed in choppy trade, with commercials accounting for most of the liquidation orders and light commission house short-covering providing support.
• Feed wheat futures declined due to sluggish demand and poor weather in Western Canada, which is expected to impact the grade of the wheat crop.

Statistics:

• Canola futures declined by 1.5% to 6.2 Canadian dollars per metric ton.
• Flaxseed futures rose by 0.5% to 4.8 Canadian dollars per metric ton.
• Western barley futures were down by 0.2% to 2.5 Canadian dollars per metric ton.
• Feed wheat futures declined by 2.1% to 3.9 Canadian dollars per metric ton.

Sources:

• Resource News International, September 20, 2004 (Commodity News Service via COMTEX)
• Winnipeg Commodity Exchange (WCE) price data (exact format not specified)