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Commodity futures

Canola Futures Expected to Start Week on Steady Note Amid Harvest Progress

Strategic Insights

— 1 min read

Canola futures on the Winnipeg Commodity Exchange (WCE) are anticipated to begin the trading week on a steady to slightly firmer note due to expected strength in CBOT soybean and grain futures. However, the gains are expected to be tempered by reports of good harvest progress in Western Canada, which may limit the upward momentum. The canola futures are seen opening 50 cents to C$1.50 per metric ton higher on the open.

Key Takeaways:

  • Canola futures on the WCE are expected to start the week on a steady to slightly firmer note due to anticipated strength in CBOT soybean and grain futures.
  • Good harvest progress in Western Canada is expected to limit the gains, with traders suggesting that the upside will be capped by ideas of fairly good harvest progress made during the long holiday weekend.
  • Rumors of export business being conducted with Pakistan may stimulate some upward price action in canola, but exporters were unable to confirm any fresh business.
  • Light pricing of old business with Japan is expected to generate some support in canola.
  • Domestic crushers are said to have backed away from the market, which may further temper the ability of canola to sustain any rally.
  • Western barley and feed wheat futures are seen opening steady to 40 cents higher in quiet trade.
  • Steady to firmer calls for CBOT corn and wheat futures are expected to provide some strength in the feed complex.
  • The lack of farmer deliveries as producers concentrate on the harvest may spark minor upward price action.

Statistics:

  • Canola futures are expected to open 50 cents to C$1.50 per metric ton higher on the open.
  • Western barley and feed wheat futures are seen opening steady to 40 cents higher in quiet trade.
  • CBOT soybean and grain futures are expected to provide strength to canola futures
  • Good harvest progress in Western Canada is expected to limit the gains (no specific percentage or metric given)
  • Rumors of export business with Pakistan may stimulate upward price action in canola (no specific metric given)

Sources:

  • Resource News International via COMTEX (Copyright 2005)

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