Canola Futures Trade Higher Amid Quiet Activity
A lack of fresh fundamental inputs and hesitation to establish large positions ahead of Thursday's USDA supply/demand balance sheets contributed to a dull trading affair at the Winnipeg Commodity Exchange, where canola futures traded higher at midsession. The strength in canola was associated with a drop-off in producer offerings to the country elevator system in Western Canada, while light exporter pricing and advances in CBOT soybean and soyoil futures also supported canola values. However, bearish chart signals and a drop-off in domestic crusher demand limited the upward price movement.
Key Takeaways:
- Canola futures traded higher at midsession, with an estimated 1,667 contracts changing hands.
- The strength in canola was associated with a drop-off in producer offerings to the country elevator system in Western Canada.
- Light exporter pricing and advances in CBOT soybean and soyoil futures also supported canola values.
- Bearish chart signals and a drop-off in domestic crusher demand limited the upward price movement.
- Western barley futures were steady to slightly firmer, with reports of light feedlot pricing and small gains in CBOT corn futures generating upward price action.
- Feed wheat futures were steady to slightly firmer, with strength in CBOT grain futures and a small pick-up in demand from end-users encouraging upward price activity.
- Spread activity was virtually non-existent, with only 30 Jan/Mar traded at C$8.10 to $8.20 under.
- Domestic crusher demand and bearish chart signals were seen limiting the upward price movement in canola futures.
Statistics:
- 1,667 canola contracts changed hands at midsession.
- 30 Jan/Mar contracts traded at C$8.10 to $8.20 under.
- 115 feed wheat contracts traded at midsession.
- 32 western barley contracts traded at midsession.
- The Canadian dollar was weak early Tuesday.
Sources:
- Resource News International via COMTEX
- Winnipeg Commodity Exchange (WCE)
- United States Department of Agriculture (USDA)